U.S. stock indices posted strong gains as optimism around trade agreements and potential Federal Reserve interest rate cuts fueled market rallies. The Dow Jones Industrial Average increased by 490 points (1.13%), while the Nasdaq gained 0.55%. The S&P 500 surpassed its previous all-time high, trading at 6,183.25 following a 0.65% rise. Progress toward a trade deal between the U.S. and China contributed to market enthusiasm, including a preliminary agreement granting the U.S. access to crucial Chinese minerals and easing trade restrictions.
Consumer sentiment improved markedly in June, with the Michigan Consumer Sentiment Index rising 8.5 points to 60.7, signaling reduced inflation expectations. Lower inflation figures and a weakening labor market have increased the likelihood that the Federal Reserve may cut interest rates sooner than anticipated, a scenario welcomed by both stock and cryptocurrency investors.
Despite ongoing structural challenges such as rising government debt and large budget allocations, stocks continued their positive momentum. The S&P 500 hit a fresh record, increasing 0.3% to 6,156.80 earlier in the day. Inflation data showed marginal increases in May, with core personal consumption expenditures rising 0.2% month-over-month and 2.7% year-over-year, slightly exceeding estimates.
Among cryptocurrencies, Bitcoin displayed significant resilience, recovering to nearly $107,000 amid the favorable market environment. Investors are closely watching the Federal Reserve’s upcoming decisions, optimistic about potential rate cuts in July. Additional easing of global tensions and tariff negotiations have contributed to a friendlier market landscape for stocks and digital assets alike.