US stocks moved higher Wednesday after President Donald Trump announced a trade agreement with Japan, reinforcing optimism that additional deals—particularly with the European Union—may soon follow.
The Dow Jones Industrial Average rose by 240 points, or 0.6%, while the S&P 500 added 0.3%.
The Nasdaq Composite also gained 0.3%, recovering after a modest dip in the prior session.
Trump said on Truth Social late Tuesday that the US had completed a “massive Deal” with Japan, which includes “reciprocal” tariffs of 15% on Japanese exports to the United States.
The president also confirmed that talks with European officials are next, as the administration aims to finalize a trade deal with the EU before an August 1 deadline.
The push comes after Trump’s April 2 announcement of sweeping tariffs rattled markets.
The positive trade developments come as the S&P 500 notched its second consecutive record close on Tuesday—its 11th of the year—climbing just 0.06%.
The Dow added nearly 180 points in that session, while the Nasdaq declined 0.4% due to weakness in semiconductor names.
Momentum in the broader market has sparked speculative appetite, with shares of smaller, financially weaker consumer-facing companies rallying. Kohl’s soared Tuesday, while GoPro and Krispy Kreme extended gains on Wednesday.
Investor attention is now turning to earnings reports from Alphabet and Tesla, due after Wednesday’s close.
These are the first updates this season from the so-called “Magnificent Seven” megacap tech firms, which have led much of the market’s gains over the past year.
Reports from Chipotle Mexican Grill and Mattel are also expected later in the day, capping a busy stretch of corporate results.
So far, 105 S&P 500 companies have reported, with 86% exceeding earnings expectations, according to FactSet.
Not looking for Powell’s urgent replacement
US Treasury Secretary Scott Bessent said on Wednesday that the Trump administration is not rushing to identify a successor to Federal Reserve Chair Jerome Powell.
Speaking to Bloomberg TV, Bessent confirmed that while the selection process is underway, any final decision will be made by President Trump.
“We are getting the process underway. Obviously, it’s going to be President Trump’s decision, and we’re not in a rush,” Bessent said.
His comments come amid ongoing speculation about Powell’s future, but Bessent made clear that there is currently no reason for Powell to step down.
In a separate interview aired Tuesday, he noted that Powell has not indicated any intention to leave before his term expires in 2028.
When asked whether Fed Governor Michelle Bowman was under consideration as a potential replacement, Bessent declined to name candidates.
“I’m not going to name names, but there are candidates, as I said, on the board, several female regional bank presidents, and there are fantastic women outside the Fed,” he said.
Bessent also said he continues to meet regularly with Powell and that their working relationship remains constructive.
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