S&P 500, Nasdaq rally to record highs on trade deals optimism

THE S&P 500 and Nasdaq notched record high closes on Wednesday, lifted by Nvidia and GE Vernova, as the European Union (EU) and the US appeared headed toward a trade deal similar to an agreement President Donald J. Trump struck with Japan.

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The White House’s deal with the European Union would include a broad tariff of 15% on EU goods imported into the US, two diplomats said. The rate, which could also extend to cars, would mirror the framework agreement the US has struck with Japan.

The benchmark S&P 500 has now climbed about 8% in 2025, while the Nasdaq has gained almost 9%.

Shares of GE Vernova surged to 14.6% an all-time high after the power equipment maker raised its revenue and free cash flow forecasts and beat Wall Street estimates for second-quarter profit. GE Vernova has gained over 80% so far in 2025, with power consumption on track to hit due to growing demand from artificial intelligence (AI) and cryptocurrency data centers.

Heavyweight AI chipmaker Nvidia climbed 2.25% and fueled gains in the S&P 500 and Nasdaq.