The S&P 500 reached new heights on Friday as market participants appeared to overlook recent remarks from President Donald Trump regarding U.S.-Canada tariffs. The ascent of the broad market index to unprecedented levels signifies a notable reversal from the lows experienced in April amidst heightened trade policy tensions. The benchmark increased by 0.52%, concluding at a historic high of 6,173.07. Earlier in the session, the S&P 500 rose as much as 0.76% to a high of 6,187.68, surpassing its previous record of 6,147.43. The Nasdaq Composite, having reached an all-time high, concluded the session with a gain of 0.52%, settling at a record level of 20,273.46. The Dow Jones Industrial Average increased by 432.43 points, representing a 1% rise, concluding at 43,819.27.

Stocks retreated from their session peaks following Trump’s announcement on Truth Social regarding the termination of trade discussions between the U.S. and Canada. Initially, investors increased their bids for equities following remarks from Commerce Secretary Howard Lutnick to Bloomberg News late Thursday, indicating that a trade framework between China and the U.S. had been finalized. Lutnick noted that the Trump administration anticipates finalizing agreements with 10 significant trading partners in the near term. Friday’s pronounced fluctuations signify the most recent instance of Wall Street’s efforts to maneuver through a continually evolving global trade environment.

Following a peak in February driven by optimism regarding pro-business policies from Trump, equities experienced a decline as the president opted to prioritize the imposition of significant tariffs. At its low in April, the S&P 500 experienced a decline of nearly 18% for 2025. The benchmark initiated a remarkable recovery following Trump’s retraction of his most stringent tariff rates and the commencement of U.S. trade deal negotiations.

The S&P 500 has increased by over 20% since hitting a low point on April 8 and is currently up almost 5% year-to-date. Throughout this period, investors continued to make purchases, undeterred by a rise in oil prices driven by the Israel-Iran conflict and an increase in yields due to concerns over deficits. A resurgence in the artificial intelligence sector, spearheaded by Nvidia and Microsoft, contributed significantly to the market’s recovery. “I can see where the risks are here – if the trade progress is merely hype from the White House and no deals are genuinely forthcoming, then this market is poised to roll over,” Thierry Wizman, global FX and rates strategist at Macquarie Group. “Ultimately, this all hinges on the growth of the U.S. economy and the expansion of earnings.”