Is the deadline for the tariff protocol unimportant? US stocks are heading towards a historical new high.

Due to easing geopolitical concerns and an increased market expectation for interest rate cuts by The Federal Reserve (FED) this year, the stock market rose to intraday highs after White House spokesperson Karoline Leavitt downplayed the imminent July tariff agreement deadline. Nvidia reached a new high, and the S&P 500 index rose by 0.8%, just a step away from its historical peak.

( NVIDIA's stock price has reached a new high, and its price-to-earnings ratio is still below the ten-year average. Analysts recommend buying ).

The US GDP has been revised down to -0.5%, and expectations for interest rate cuts are heating up.

Consumer spending in the United States grew at the lowest level since the outbreak of the pandemic in the first quarter, with a quarterly decrease of 0.5% in Gross Domestic Product (GDP). Although the number of first-time unemployment claims decreased, the number of continuing claims rose to the highest level since 2021.

Morgan Stanley's Chris Larkin from E*Trade said:

"The economy is slowing down, but remains resilient. Although the overall data may not convincingly support a bull or bear market, the current market seems more focused on the strong performance of tech stocks and the possibility of the S&P 500 returning to record levels."

After the economic data was released, the market bets that the Federal Reserve will cut interest rates at least twice this year, causing bond prices to rise accordingly. Traders have fully digested the expectation that the Federal Reserve will cut rates twice starting in September ( before the end of the year ). If next week's employment report remains weak, the expectation for a third rate cut by the Federal Reserve may strengthen. The dollar index closed at its lowest level since 2022.

U.S. President Trump recently launched another attack on Federal Reserve Chairman Powell, clearly stating that he is considering three to four potential candidates to take over this key position. Although Powell's term lasts until May next year, this statement has sparked public interest in the possible shift towards a dovish leadership and policy direction at the Federal Reserve.

(Trump names Powell's successor, when does the term of the FED Chair end? How is the Chair of the Federal Reserve (FED) selected? )

The market is currently focused on the May Personal Consumption Expenditures Price Index (PCE), which will be released on Friday. This data is a key basis for the Federal Reserve (FED) to assess inflation trends.

Is the tariff deadline unimportant? US stocks are heading towards historical highs.

White House spokesperson Karoline Leavitt downplayed the imminent July tariff agreement deadline in the market, causing the stock market to rise to intraday highs.

"The deadline is not important, it may be extended, but that is the president's decision."

July 8 is the day when the so-called liberation day tariff comes into effect after being suspended for 90 days, while July 9 is the deadline for the EU to reach an agreement to avoid a 50% tariff.

Leavitt's remarks further confirm the main reason for the market's rebound from the April lows:

President Trump will actually never implement those large-scale Liberation Day tariffs, which caused market turmoil, and he ultimately postponed those tariffs.

This article is about the tariff protocol deadline not being important? U.S. stocks are heading towards a historical new high, first appearing in Chain News ABMedia.