U.S. Markets Surge Amid Trade Deal Optimism and Economic Uncertainty

The S&P 500 and Nasdaq reached new highs fueled by optimism over U.S. trade deals. Despite strong quarterly gains, uncertainties persist with U.S. policies and economic data releases. Trade negotiations and potential rate cuts also impact investor confidence, as significant stock movements occur across major U.S. indexes.

The S&P 500 and Nasdaq edged up to fresh record highs on Monday, driven by optimism surrounding U.S. trade deals. This positive outlook contributed to a rally that propelled key indexes towards quarterly gains, with the Nasdaq, S&P 500, and Dow Jones showing significant increases since late last year.

However, the indexes are on track for their weakest first-half performance since 2022, as uncertainties around U.S. policies persist. The Dow remains below its record high from December, while the S&P 500 and Nasdaq experienced recoveries after trade tensions in April. Recent trade agreements with China and the UK offer hope of avoiding a global trade war.

Meanwhile, U.S. Treasury Secretary Scott Bessent warned of potential tariffs despite negotiations. The Senate is set to tackle Trump's tax-cut and spending bill, facing internal party divisions. Key economic indicators and Federal Reserve moves, including potential rate cuts, are closely watched as banks and tech firms report stock gains.

(With inputs from agencies.)