DJI: Dow Jones Soars 500 Points to Float Near Record as Trade Deal Cools Market Jitters

Just four points — that’s how much the 30-stock index needs to pop a new ATH. Meanwhile, its two peers are already there.

📊 Dow Soars 508 Points

• The Dow Jones Industrial Average DJI surged 508 points on Wednesday, or 1.1%, to 45,010.29, leaving it just four points shy of a new all-time high — its closest to its December 4 record high.
• The S&P 500 rose 0.8% to another record close, its twelfth ATH as the streak goes on, while the Nasdaq Composite added 0.6%, also notching a new high. With the broader indexes already in record territory, the Dow is now the last big benchmark to get there.
• What provided fuel for the rally? Investors cheered a fresh wave of trade deals, brushing aside pre-earnings jitters and sending risk appetite soaring into the midweek.

🤝 Tariff Relief Rally

• President Trump announced new agreements with Japan, Indonesia, and the Philippines on Tuesday, signaling a softening stance on tariffs ahead of the August 1 deadline. Markets loved it. But they wanted more. And bet on it.
• According to The Financial Times, the EU and US are close to a deal with similar headline terms to the Japan agreement — a 15% tariff instead of the previously threatened 25% or 30%.
• Investors are chipping in that a broader wave of trade pacts could cool global tensions and reduce economic friction at a time when the Fed and the ECB are already holding steady.

📆 Big Tech Earnings Roll In

• The bullish backdrop came just ahead of key earnings from Alphabet GOOGL and Tesla TSLA, both of which delivered shortly after the closing bell. Roughly 85% of S&P 500 companies reporting so far have beat estimates, keeping the optimism flowing.
• The Google parent’s stock added roughly 2% after hours as revenue landed above estimates but the company lifted its capital expenditures forecast for 2025. In other words, more billions will be shoved into AI.
• The EV maker’s stock slipped about 5% after CEO Elon Musk warned that the next few quarters might bring new challenges as competition rises. Revenue came in below estimates at $22.50 billion against $22.74 billion expected.