US Stocks Surge on Japan Trade Deal Hopes
Futures Point Higher as Trump Announces “Massive Deal”
Wall Street is set for a positive opening Wednesday as President Donald Trump revealed the United States has secured a significant trade agreement with Japan, igniting optimism for further international accords.
Trade Breakthrough Fuels Market Optimism
Futures tracking the Dow Jones Industrial Average showed a gain of 217 points, a 0.5% increase. S&P 500 futures climbed 0.4%, while Nasdaq-100 futures advanced 0.2%, reflecting investor confidence following the announcement.
Trump declared on Truth Social late Tuesday that a “massive Deal” with Japan had been finalized. The pact reportedly establishes reciprocal tariffs of 15% on goods exported from Japan to the U.S. The administration is also reportedly in discussions with European officials to forge a similar trade pact with the European Union.
This development comes as the U.S. races to finalize trade agreements before a critical August 1 deadline. The nation had previously implemented widespread tariffs, causing market volatility earlier in the year.
Previous Session Performance
The markets concluded Tuesday with the S&P 500 achieving its second consecutive day of record highs, edging up by 0.06%. This marked the eleventh closing record for the benchmark index in 2025. The Dow Jones Industrial Average saw a nearly 180-point increase during the same session. Conversely, the tech-focused Nasdaq Composite experienced a slight decline of about 0.4%, largely due to a downturn in chip stocks.
Key Earnings on Deck
Investors are keenly awaiting earnings reports from tech giants Alphabet and Tesla, scheduled for release after Wednesday’s market close. These will be the first earnings from major technology companies this season, a sector that has led market performance in recent years.
Additionally, market participants will be watching for results from Chipotle Mexican Grill and Mattel. So far, over 86% of the 105 S&P 500 companies that have reported earnings have exceeded Wall Street’s expectations, according to FactSet data.
On the economic calendar, traders will be closely monitoring existing home sales data, expected to be released Wednesday morning.
The U.S. housing market has shown resilience, with existing home sales reaching an annualized rate of 4.12 million units in May 2024, according to the National Association of Realtors. This indicates a stable demand in the sector.
