Wall Street climbs as trade optimism fuels record run

US stocks moved higher in afternoon trading on Friday, with the S&P 500 and Nasdaq hovering near record levels as investors absorbed a wave of trade updates and earnings results. The S&P 500 rose by 0.40%, on course for a fifth consecutive record close—its longest streak in over a year—while the Nasdaq also reached an intraday high. Optimism surrounding trade negotiations helped support the rally, with President Trump expected to meet European Commission President Ursula von der Leyen on Sunday amid hopes for a US-EU agreement. Trade deals were also concluded with Japan, Indonesia, and the Philippines ahead of the 1 August tariff deadline, although negotiations with Canada appeared to have stalled.

In the United Kingdom, the FTSE 100 declined on Friday, ending a six-day winning streak after UK retail data disappointed. Retail sales rose by 0.90% in June, falling short of expectations, while May’s already sharp decline was revised even lower to -2.80%—the worst reading since December 2023. Consumer confidence also weakened, with GfK’s index slipping as households braced for potential tax increases in the autumn. Rightmove fell more than 2%, despite posting stronger-than-expected profits for the first half of the year, as the company warned that growth would likely slow in the second half.

Across Europe, markets mostly ended the day lower as investors continued to evaluate corporate earnings reports while awaiting further developments in EU-US trade relations. The STOXX 50 inched up to 5 360, while the broader STOXX 600 declined by 0.30% to 550, dragged down by losses in the industrial and healthcare sectors. Shares in Schneider Electric and Airbus both dropped by over 1% ahead of their earnings results due next week, setting a cautious tone across the industrial space.

In Asia, Japan’s Nikkei 225 retreated by 0.88% to close at 41 456, with the broader Topix Index down 0.86% to 2 952, as investors took profits following a strong rally that had lifted both benchmarks to record highs earlier in the week. Despite Friday’s dip, both indices still posted robust weekly gains of more than 4%, underpinned by optimism around the recently finalised US-Japan trade deal. Under the terms of the agreement, Japanese exports to the US will be subject to a 15% tariff—well below the 25% level initially threatened by President Trump—offering a degree of relief to markets.

Chinese equities followed suit, with the Shanghai Composite falling by 0.33% to close at 3 594, while the Shenzhen Component edged down by 0.22% to 11 168, as traders adopted a more cautious stance ahead of next week’s US-China trade negotiations.

In South Africa, the benchmark SAALL index dropped to 98 919 points on Friday, down 1.05% from the previous session.

In commodities, WTI crude futures fell by more than 1% to trade near $65 per barrel, erasing gains from earlier in the week amid growing expectations of increased oil supply from Venezuela. Meanwhile, gold prices declined for a third consecutive session, falling to around $3 360 per ounce as easing tariff concerns reduced demand for the safe-haven metal.