WASHINGTON (TNND) — U.S. Stocks closed at an all-time high on Friday. This soar came after a period where stocks continuously dropped amid fluctuating tariffs and trade war.
The market’s turnaround occurred in about half the time that it normally takes, said Sam Stovall, chief investment strategist at CFRA.
“Investors will breathe a sigh of relief,” he said.
The Nasdaq composite gained 0.5% and set its own all-time high. The Dow Jones Industrial Average rose 1%.
Trump decided to end trade agreements with Canada on Friday, which could have influenced the market. However, the market steadied.
“They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also,” Trump wrote on Truth Social. “Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately.”
“We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven-day period,” he added.
Stock rebounds also stem from the U.S. and China reaching a preliminary deal to roll back some of the penalties they had put on each other’s economies in a bitter trade war.
Consumer confidence
Consumer confidence moved backward in June over broad-based fears about the economy and tremendous uncertainty facing workers and businesses over the path of trade and tariff policy from the White House, along with anxiety about inflation spiking out of control. The U.S. has kept a baseline 10% tariff on all imported goods.
Inflation
The Fed has yet to cut inflation in 2025. The Fed has been in a holding pattern since late last year on moving forward with another cut to its benchmark interest rate as it waits to see the impact Trump’s tariffs.
The Associated Press contributed to this report.
