Wall Street Reaches All-Time Highs on Trade Deal Optimism

Market Drivers: Trade Deals and Economic Data

• 📈 Wall Street is pushing towards all-time highs driven by optimism surrounding US trade deals.
• 🤝 The US and China have finalized a trade agreement, including China's commitment to deliver rare earths.
• 🌍 The White House plans to reach agreements with 10 major trading partners, fueling further market confidence.
• 📉 The EU is considering lowering tariffs on US imports to expedite a trade deal with President Trump.

Economic Indicators and Company Performance

• 📊 The expected US core PC price index reading for May is .1%, potentially marking the lowest 3-month stretch since the pandemic.
• 🛍️ Household spending is anticipated to show growth for a second consecutive month, with fears of tariff-driven inflation receding.
• 👟 Nike shares gained after an upbeat earnings call, signaling progress in the company's turnaround efforts.
• 🇨🇳 Nike plans to reduce reliance on production in China to mitigate the impact of US tariffs.

Financial Sector Watchlist

• 🏦 US banks are under scrutiny as the Fed releases its annual stress test results.
• ✅ The largest lenders are expected to pass these health checks, paving the way for increased dividends and buybacks.
• 🚀 Looser regulations and increased dealmaking have recently boosted bank stocks, with expectations of a sector breakout.