Market Soars to New Highs on Trade Breakthroughs and Earnings Momentum

The stock market delivered its strongest performance of the week on Wednesday, as optimism surrounding corporate earnings and major trade developments propelled the S&P 500 to new record highs. The benchmark index rose 0.8%, setting both an intraday high of 6,360.64 and a new closing high of 6,358.91.

Futures received a boost before the opening bell following President Trump’s announcement of a finalized trade agreement with Japan. The deal includes a 15% tariff on Japanese imports, $550 billion in pledged investment into the U.S., and expanded access for U.S. rice and auto exports into the Japanese market.

Momentum accelerated midday after the Financial Times reported that a similar deal with the European Union was nearing completion, also featuring a 15% tariff rate. The news marked a key turning point in sentiment, easing fears of steeper tariffs and fueling a broad-based rally.

Technology stocks initially lagged, weighed down by Texas Instruments (TXN -13.3%) after the chipmaker issued cautious guidance despite beating earnings expectations. However, the sector reversed early losses to close up 0.7%, while chip stocks as a group (PHLX Semiconductor Index) finished flat.

Healthcare led all sectors, jumping 2.0% on the back of strong results from Thermo Fisher (TMO +9.1%), which exceeded EPS estimates and built on recent strength among CRO firms. Industrials (+1.8%) also stood out, bolstered by upbeat reports from GE Vernova (GEV +14.7%) and Lennox International (LII +6.7%).

In total, nine of the eleven S&P 500 sectors posted gains, with only utilities (-0.8%) and consumer staples (-0.1%) slipping into the red.

Buying was widespread across the board. Small-cap and mid-cap stocks extended their recent rebound, with the Russell 2000 up 1.5% and the S&P MidCap 400 adding 0.9%. Mega-caps also found their footing, as the Vanguard Mega Cap Growth ETF climbed 0.7%, recovering from the prior day’s dip.

After Tuesday’s rotation into value stocks, today’s action reflected a more balanced and bullish tone. Investors were clearly encouraged by the twin tailwinds of solid earnings results and de-escalating trade tensions, setting an upbeat tone for the remainder of the week.

The FTinvest 11 portfolio ended the trading session in positive territory, showing solid performance amid generally favorable market conditions. Right from the opening bell, the index moved higher, outpacing its benchmark for several hours and coming very close to setting a new all-time high.

However, the upward momentum eased slightly in the second half of the day, leading to a modest pullback. Still, FTinvest 11 finished the session with a 0.37% gain, closing at 804.61—just 0.25% below its previous record.

Despite the late-session slowdown, today’s move reflects continued investor optimism and the portfolio’s resilience in a moderately volatile environment.