U.S. Stocks Surge After Trump Announces Trade Deal with Japan

The US stock markets rose following President Trump's announcement of a trade agreement with Japan. The S&P 500 increased by 0.3%, the Dow Jones Industrial Average by 0.4%, and the NASDAQ Composite initially surged before reversing course. Alphabet's stock fell 0.7%, while Tesla saw a slight increase. Toyota and Honda shares surged 12% due to reduced tariffs on Japanese car imports. GoPro and Krispy Kreme shares skyrocketed 47% and 17%, respectively, while Opendoor declined 12%.

The U.S. stock markets experienced a mixed reaction following President Trump's announcement of a trade agreement with Japan. The S&P 500 increased by 0.3%, the Dow Jones Industrial Average by 0.4%, and the NASDAQ Composite initially surged before reversing course. Alphabet's stock fell 0.7%, while Tesla saw a slight increase. Toyota and Honda shares surged 12% due to reduced tariffs on Japanese car imports. GoPro and Krispy Kreme shares skyrocketed 47% and 17%, respectively, while Opendoor declined 12%.

The agreement, which includes "reciprocal" tariffs of 15% on Japanese exports to the U.S., has been well-received by investors who are hopeful that it will lead to further trade deals with other countries. The Japanese stock market also recorded a strong rise, with the Nikkei index soaring more than 3% driven by a surge in auto stocks [1]. The yen appreciated to 146.20 against the dollar, up from nearly 148 on Tuesday [1].

The U.S. stock markets have been volatile in recent weeks, with optimism growing despite the lack of agreements until a few days ago. The Dow Jones Industrial Average traded 240 points higher, or 0.6%, following the announcement [2]. The tech-heavy Nasdaq Composite fell about 0.4% as chip stocks took a hit, while investors awaited earnings from Alphabet and Tesla [2].

The automotive industry, which has been significantly impacted by tariffs, is expected to benefit from the reduced tariffs. Tokyo Motor and Mitsubishi gained about 12%, while Nissan rose more than 9% [1]. This positive sentiment is likely to continue, with investors hopeful that other countries will be able to avoid the worst impact of U.S. tariffs.

References:
[1] https://www.agenzianova.com/en/news/Japan-leads-the-rise-in-Asian-stock-markets-after-the-announcement-of-the-tariff-agreement-with-the-US/
[2] https://www.cnbc.com/2025/07/22/stock-market-today-live-updates.html