US stocks rallied on Wednesday, driven by excitement over new international trade deals and big tech companies gearing up to release their earnings reports.
The Dow Jones Industrial Average soared by 507.85 points, or 1.14%, to close at 45,010.29—just shy of an all-time high. The S&P 500 climbed 0.78% to a record close of 6,358.91, and the Nasdaq Composite advanced by 127.33 points, or 0.61%, to finish at 21,020.02, marking its first-ever close above the 21,000 mark.
Nearly all sectors saw gains, with nine out of eleven industries in the S&P 500 ending in the green. Health care and industrials led the pack, gaining 2.03% and 1.75% respectively. However, utilities and consumer staples saw slight declines.
The upbeat mood among investors was largely thanks to a new trade agreement between the United States and Japan. On Tuesday, President Donald Trump announced that the deal includes a 15% tariff on imports from Japan—lower than the previously threatened 25%—and promises $550 billion of Japanese investment into the US economy.
This news sent Japanese automaker stocks soaring. Shares of Toyota and Honda, which are traded on US markets, each jumped over 13%. American car manufacturers also benefited, with Stellantis climbing 11.54% and General Motors gaining 8.67%.
In the tech world, investors are eagerly awaiting earnings reports from major companies. Nvidia rose over 2%, while Meta Platforms and Broadcom each added more than 1%. Microsoft and Amazon reported modest gains. Tesla edged slightly higher, whereas Alphabet and Apple dipped a bit.
The combination of positive trade news and anticipation for tech earnings has created a wave of optimism on Wall Street, with investors hopeful for continued growth in the markets.
