
On Tuesday, president Donald Trump announced a deal with Japan featuring 15% tariffs on Japanese exports to the U.S., including autos. Trump claimed Japan would invest $550 billion in the U.S. with 90% of the profits going to America. Trump stated Japan will open to U.S. trade including vehicles, rice and other agricultural products.
Japanese markets surged after the announcement, with the Nikkei 225 gaining over 3%. Auto stocks jumped significantly: Honda was up 8%, Toyota gained 11%, and Nissan rose 8%, and Mazda also rose 17%
S&P 500 futures rose early Wednesday following Trump’s Japan trade deal announcement. Futures on the broad market index gained 0.2%, Dow futures added 0.3%, and Nasdaq 100 futures climbed 0.1%.
This follows the S&P 500’s second consecutive record close, up 0.06%. Dow Jones gained nearly 180 points while the Nasdaq fell 0.4% on chip stock weakness.
Investors await earnings from Alphabet and Tesla after the bell today the first reports from closely watched megacap tech companies.
In the commodity market, gold jumped for the third day in a row yesterday as the US dollar continued to weaken. The precious metal peaked at $3,438 today despite the U.S. trade deal progress. Silver price rose to $39.39 during the Asian-pacific session.
All major currencies rose against the US dollar in yesterday’s trading. USDCAD fell 0.56% to 1.3605. USDCHF dropped 0.73% to 0.7920, and EURUSD rose 0.50% to 1.1775
The crypto market is showing slight weakness as momentum slows down after Trump signed the GENIUS act into law on Friday. Attention now shifts to the clarity bill and anti-CBDC bill, which are currently being discussed by Senate members
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