MARKET SNAPSHOT

The S&P 500 and Nasdaq recorded their first record closes in months, though President Trump's promise to end trade talks with Canada pared gains. The trade tensions fueled a Treasurys selloff that boosted yields. Oil ended the session higher but posted a weekly loss. Gold prices fell and the U.S. dollar edged higher.

MARKET WRAPS

EQUITIES

Markets hit new highs, fueled by optimism over trade and budget developments and overcoming a volatile spell in the afternoon driven by renewed tensions with Canada.

The Dow Jones Industrial Average rose 1.0%, while the S&P 500 and the Nasdaq Composite both gained 0.5%.

The S&P 500 and Nasdaq Composite both hit records shortly after the open, as investors continue to discount the economic threat posed by the trade war and Middle East instability. The gains mark a historic rebound from April's tariff-driven turmoil.

Stocks ended mixed in Asia on Friday.

China's benchmark Shanghai Composite Index fell 0.7%. The Shenzhen Composite Index rose 0.4%, and the ChiNext Price Index gained 0.5%. Hong Kong's Hang Seng Index declined 0.2%.

Japan's Nikkei Stock Average added 1.4%.

Stocks in Australia slipped, as the S&P/ASX 200 fell 0.4%.

In New Zealand, the S&P/NZX 50 rose 0.8%.

COMMODITIES

Three sessions of modest gains weren't enough to avoid heavy weekly losses in crude oil as the Israel-Iran cease-fire and avoidance of supply disruptions took much of the geopolitical risk premium out of the price.

Oil futures are "moving into a consolidation pattern" with support from tighter U.S. stocks, a weaker dollar and the start of the driving season, while greater OPEC production is a negative, BOK Financial's Dennis Kissler said.

"The market seems to be placing value at very near the same levels as before the Iranian conflict started."

West Texas Intermediate settled up 0.4% at $65.52 a barrel, down 11% on the week. Brent edged up 0.1% to $67.77 for a 12% weekly loss.

Front month Comex gold for July delivery lost 1.8% to settle at $3273.70.

TODAY'S TOP HEADLINES

Trump Says He Has Terminated Trade Talks With Canada

WASHINGTON-President Trump said he terminated trade talks with Canada over what he called an egregious digital-services tax on U.S. tech companies, plunging relations with America's second-largest trading partner back into turmoil.

"Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump wrote Friday on Truth Social.

Trump's decision is the latest blow to an already strained relationship between the U.S. and its second-largest trading partner after Mexico. Trump has said the U.S. should annex Canada to improve trade relations and security. Recently elected Canadian Prime Minister Mark Carney has staked his political reputation on pushing back. He has said Canada isn't for sale.

Inflation, Spending Data Leave a Cloudy Picture for the Federal Reserve

The Federal Reserve's key inflation gauge ran just slightly above expectations in May, clouding the outlook for rate cuts and adding to concerns about tariff-induced price pressures as consumer spending slowed.

The core personal consumption expenditures price index, which strips out food and energy prices, rose 0.2% on the month and 2.7% from a year earlier, the Bureau of Economic Analysis said Friday. That topped FactSet estimates for a 0.1% monthly and 2.6% annual gain.

Headline PCE rose 0.1% on the month and 2.3% year over year, in line with expectations.

American Consumers Felt Better in June Than They Did in May

American households felt more optimistic about the economy in June, though confidence remains lower than it was at the start of the year.

The University of Michigan said Friday its index of consumer sentiment for June was 60.7, above a May reading of 52.2.

Economists polled by The Wall Street Journal had forecast a June reading of 60.5.

China Confirms Breakthrough on Rare-Earth Exports to U.S.

BEIJING-China on Friday pledged to approve export applications for rare earths to the U.S., potentially easing a major irritant in the countries' trade negotiations that has also become a source of deepening concern for American manufacturers.

China's Commerce Ministry, in a written statement carried by state media, appeared to confirm details of a deal alluded to by President Trump hours earlier, with Beijing promising to "review and approve eligible export applications for controlled items in accordance with the law."

The Chinese statement was presented as a response to an unnamed reporter's question that specifically asked about Chinese exports of rare earths, and also referenced a truce agreed to between the two sides in Geneva in May, at which the issue of rare-earths was a focal point.

Week Ahead for FX, Bonds: U.S. Jobs Data in Focus as Fed Rate Cuts Loom

Below are the most important global events likely to affect FX and bond markets in the week starting June 30.

U.S. monthly jobs data will be the focus of the week as markets look to see whether the Federal Reserve could start cutting interest rates as soon as next month as political pressure for lower rates increases.

In Europe, focus will center on comments from central bankers around the globe at the European Central Bank's forum in Sintra, Portugal, as well as on flash eurozone inflation figures. In Asia, purchasing managers' surveys from China and the Bank of Japan's quarterly tankan corporate survey are scheduled.

Expected Major Events for Monday

01:00/NZ: Jun ANZ Business Outlook

01:00/JPN: May Steel Imports & Exports Statistics

01:00/AUS: Jun Melbourne Institute Monthly Inflation Gauge

01:30/AUS: May Financial Aggregates, incl Private Sector Credit

01:30/CHN: Jun CFLP China Manufacturing Purchasing Managers' Index $(PMI.UK)$

02:00/SIN: May Money Supply

02:00/SIN: May Bank Loans

03:00/SKA: May New deposit, loan rates

05:00/JPN: May Housing Starts

05:00/JPN: May Construction Orders

06:30/AUS: May International Reserves & Foreign Currency Liquidity

07:00/THA: May Industrial Production Index

07:00/MAL: May Money Supply

08:15/HK: May Money Supply

09:59/PHI: May Money Supply (M3)

09:59/HK: May Tourism figures

09:59/CHN: Jun CFLP China Non-Manufacturing Purchasing Managers' Index (PMI)

22:00/NZ: 2Q NZIER Quarterly Survey of Business Opinion

22:45/NZ: May Building Consents Issued

23:00/AUS: Jun Australia Manufacturing PMI

23:50/JPN: 2Q Tankan Survey of Enterprises in Japan

00:00/SKA: Jun Trade data

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(END) Dow Jones Newswires

June 29, 2025 16:30 ET (20:30 GMT)

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