S&P 500 Reaches New High as U.S.-Japan Trade Deal Lifts Markets Ahead of Major Tech Earnings

U.S. stock markets advanced on Wednesday, with the S&P 500 climbing 0.5% to a new all-time high. The Dow Jones Industrial Average gained 0.9%, nearing its first record since December, while the Nasdaq Composite rose 0.3%. The gains followed news of a trade agreement between the United States and Japan, under which tariffs on Japanese imports will be set at 15%, lower than the previously announced 25%. The agreement comes ahead of an August 1 deadline for the U.S. to impose higher tariffs on major trading partners.

Shares of Japanese automakers traded in the U.S. saw significant increases, with Toyota and Honda each up about 13%. Stellantis and General Motors also rose, gaining 11% and 6% respectively. Among companies reporting earnings, GE Vernova surged 14% after exceeding analysts' expectations, while AT&T rose 0.5% despite disappointing internet subscriber growth. Texas Instruments fell 13% following a weak profit outlook, and Fiserv dropped 17% to lead S&P 500 decliners.

Investors also awaited quarterly results from Alphabet and Tesla, with Alphabet shares down 0.5% and Tesla up 0.5% ahead of their reports. Other major technology stocks showed mixed performance, with Nvidia and Meta Platforms each gaining over 1%, while Microsoft and Apple edged lower.

In other markets, Bitcoin traded at $118,500, down from an overnight high but remaining close to its record. The yield on the 10-year Treasury note rose to 4.39%, and the U.S. dollar index was little changed. Gold futures declined 0.7% to $3,420 an ounce, and West Texas Intermediate crude oil futures fell 0.7% to $64.85 per barrel.