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10h ago

S&P 500 Hits Fresh Record High as Trade Pacts and AI Spending Fuel Gains

Markets have factored in Fed rate cuts later this year, running into rare overbought technical readings under persistent inflation pressures.

Overview

  • On June 27 the S&P 500 closed at an all-time high, completing a swift rebound from its early April near-bear market lows.
  • President Trump’s April 9 decision to pause reciprocal tariffs and Canada’s repeal of its digital services tax reignited optimism in U.S. trade talks.
  • A surge in corporate investments in artificial intelligence applications provided a significant lift to equity valuations this quarter.
  • Futures tied to the S&P 500 and Nasdaq reached new highs Monday following news of expedited rare-earth shipments from China and revived trade negotiations.
  • Technical indicators flashed a rare overbought signal on June 28 even as May PCE inflation remained at 2.7%, above the Fed’s 2% target, highlighting potential headwinds.