S&P 500 Soars to New Highs as Trade Talk Optimism Fuels Investor Frenzy

Wall Street's benchmark index rockets upward—because nothing says 'bull market' like vague geopolitical hopes.

Trade war détente? More like trader dopamine. The S&P 500's relentless climb continues as speculators pile into risk assets, betting that this time, maybe—just maybe—officials will stop posturing long enough to sign something.

No concrete details? No problem. Markets are running on pure narrative adrenaline now. Just don't ask what happens when the music stops.

Tariffs and trade deals

This upbeat mood around stocks comes amid growing Optimism that the United States is edging toward significant trade deals with its major partners.

As well as China, the United Kingdom, and the European Union, there’s also Canada. The U.S. has some FORM of trade agreements with China and the UK—but the July 9 deadline for comprehensive deals or a resumption of reciprocal tariffs is fast approaching.

Speaking to CNBC on Monday, Nicholas Burns, Harvard’s Belfer Center professor and former U.S. Ambassador to China, said the U.S. and China may not be close to a comprehensive deal yet. However, Burns noted the U.S. can leverage the current situation to extract more from China.

He told ‘Squawk Box’ in an interview:

“We need more leverage on our side of the table, and it’s there for the taking if we make China the centerpiece of this.” 

Meanwhile, there’s also the potential for fresh talks between Canada and the U.S. after Canadian authorities scrapped a retroactive digital services tax aimed at American tech companies.

President Donald TRUMP had last week called for a halt to any engagement, referring to the digital services tax as a “blatant attack” on America. Tech stocks gained on the news.