U.S. Stocks Surge as Nasdaq and S&P 500 Set Intraday Records Amid U.S.-China Trade Optimism

In early trading on June 27, the U.S. stock market continued to gain momentum, with the Nasdaq and S&P 500 indices reaching fresh intraday highs. The market was buoyed by mounting optimism over a possible U.S.-China trade agreement.

The Dow Jones Industrial Average rose 257.82 points, or 0.59%, to 43,644.66; the Nasdaq Composite gained 95.55 points, or 0.47%, to 20,263.47; and the S&P 500 advanced 26.12 points, or 0.43%, to 6,167.14. During the session, the S&P 500 climbed to 6,170.25, while the Nasdaq touched 20,268.49, setting intraday records for both indices.

Rick Rieder, the chief investment officer of global fixed income at BlackRock, remarked that the market had been in a holding pattern, with significant cash waiting to be deployed. He suggested that in the absence of negative news, these assets would naturally be drawn into the market.

Attention is heavily focused on the developments in U.S.-China trade relations. U.S. Commerce Secretary Howard Lutnick announced that a framework for a trade agreement had been finalized. He also mentioned that the Trump administration expects to soon reach agreements with ten major trading partners, while emphasizing that further negotiations might extend deadlines for coverage categories set for July 9.

On the economic front, U.S. consumer expenditure in May registered its largest decline since the beginning of the year, highlighting the growing pressure from uncertainties surrounding Trump's economic policies on growth prospects. According to the Bureau of Economic Analysis, personal consumption expenditures fell 0.3% month-on-month after adjusting for inflation.

These economic indicators have reinforced expectations for interest rate cuts by the Federal Reserve. The market has already priced in two rate cuts expected later this year, with some anticipation of a third rate cut possibility emerging.