US stocks go up as news of trade deals mean tariff risks go down

A trade deal with Japan and reports that a similar agreement with the EU was near the finish line propelled the S&P 500 to fresh all-time and closing highs on Wednesday.

The benchmark US stock index closed up 0.8%, the Nasdaq 100 rose 0.4%, and the Russell 2000 advanced 1.5%.

Every S&P 500 sector ETF gained outside of utilities, with healthcare, industrials, and energy leading the way higher.

The day’s gains were led by Lamb Weston, with shares jumping 16% after the frozen potato producer topped Q4 expectations and doubled down on its cost-cutting plan. Fiserv was among the worst performers, falling nearly 14% after the payment tech company topped Q2 estimates but narrowed its full-year earnings forecast.

Shares of Toyota, Honda, and Mazda all soared following Japan’s fresh trade deal with the US, which slashes levies on Japanese auto imports to 15% from 27.5%.

GE Vernova jumped nearly 15% after the energy equipment giant posted better-than-expected Q2 results. Other AI-linked power providers posted solid gains, as rising electricity prices are poised to be passed on to consumers.

The meme stock targets shifted, and the impulse was a lot weaker than previous editions: the likes of Krispy Kreme and GoPro were up huge in early trading, but pared much of those gains throughout the day.

Similarly, but with much better results, Hims & Hers was up 16% on ostensibly no news pertaining to the company and amid a spike in bullish options activity.

Abivax closed up more than 500% after it announced that late-stage trials for its treatment for ulcerative colitis showed promise.

Hasbro shares jumped as much as 5% before closing in the red after the toymaker topped Q2 estimates and raised its full-year guidance.

Roblox shares dipped after Raymond James issued a rare downgrade on the stock, tapping the brakes following a massive rally in recent months.