Wall Street wrapped up the week with a powerful rally, as the S&P 500 surged to fresh record highs on Friday—despite renewed trade tensions between the US and Canada. The benchmark index gained 0.52% to close at 6,173.07, after briefly hitting 6,187.68 earlier in the session. That surpasses its previous record of 6,147.43.
The Nasdaq Composite also closed at an all-time high, up 0.52% to 20,273.46, while the Dow Jones Industrial Average rose by 432 points, or 1%, to settle at 43,819.27.
Trade headlines drive intraday swings
Markets had initially jumped on optimism after US Commerce Secretary Howard Lutnick said a trade framework with China had been finalised, with deals expected soon with 10 other major partners. But gains faded slightly after President Donald Trump announced that trade talks with Canada had been scrapped.
This tug-of-war between optimism and disruption continues a pattern investors have come to know well in 2025. Stocks had tumbled earlier this year following Trump’s sweeping tariff rollout, which caused the S&P 500 to fall nearly 18% by early April. Since then, a rollback in the harshest measures and progress in trade talks have helped fuel a sharp rebound.
Markets shake off global risks
The S&P 500 has now climbed more than 20% from its April low, and is up nearly 5% year-to-date. The recovery has come in spite of external pressures, including surging oil prices linked to Middle East tensions and a rise in bond yields due to deficit concerns. Artificial intelligence leaders like Nvidia and Microsoft have played a key role in powering the comeback.
European markets rise on trade optimism
European stocks closed higher Friday, buoyed by signs of improving trade relations between the US and China. The Stoxx Europe 600 rose 1.1%, with Germany’s DAX up 1.5%, France’s CAC 40 gaining 1.8%, and the UK’s FTSE 100 advancing 0.7%. Auto stocks were strong performers, while Barclays and Deutsche Bank both touched decade highs.
Australian market
Australian shares are expected to edge higher at Monday’s open, with ASX futures up 5 points to 8,521. The S&P/ASX 200 has risen 9.7% over the past financial year—its best result since June 2021.
Gold outlook
In commodities, gold is on track to become Australia’s third-largest export by value, overtaking metallurgical coal. A federal report forecasts $56 billion in earnings, fuelled by record prices and strong demand from central banks amid global volatility.
