US mid-week rally builds on tariff thaw; Dow climbs 400 points during trade

US mid-week rally builds on tariff thaw; Dow climbs 400 pts during trade

US stocks remained in positive territory midway through Wednesday’s session, as investors digested progress on trade negotiations and positioned ahead of key earnings from tech giants.

The Dow Jones Industrial Average climbed over 400 points, lifted by industrials and consumer cyclicals. The S&P 500 notched another intraday record, up 0.5 percent, while the Nasdaq Composite lagged with a modest 0.2 percent gain as chipmakers slipped.

Sentiment got a boost after President Donald Trump announced a “massive” reciprocal trade agreement with Japan late Tuesday. Markets were further encouraged by reports that the U.S. and EU are nearing a similar 15 percent tariff framework, aimed at avoiding the sweeping duties set to take effect on August 1.

The rally showed signs of fatigue among tech names, with chip stocks under pressure and some investors rotating into recently overlooked consumer names. GoPro, Krispy Kreme, and Mattel saw outsized moves as speculative appetite remained intact.

Investors are bracing for a flurry of after-hours earnings, with Alphabet, Tesla, IBM, and Chipotle set to report. These releases are expected to shape sentiment heading into the back half of the week.

So far, the Q2 earnings season has gotten off to a strong start: Over 86 percent of S&P 500 companies reporting have topped analyst estimates, according to FactSet.

Notable stock stats as of mid-session:

Alphabet (GOOGL): Lower on the day, eyeing an end to a 10-session winning streak. On track for its fourth straight positive month.

Tesla (TSLA): Up over the past week, trading at a one-month high.

IBM: Slightly lower; shares remain within 4 percent of year-to-date highs.

Elsewhere, gold prices dipped, reflecting reduced safe-haven demand. Futures slipped 0.3 percent to $3,434.50/oz, as easing trade tensions boosted risk sentiment. The US dollar index was steady, while the British pound rose 0.2 percent to 1.3548, amid speculation that the UK could secure a similar trade deal.

European Market Update

The pan-European STOXX 600 index rose by 1 percent as of 8:40 AM ET (2:40 PM CEST), reflecting investor confidence in potential trade resolutions.

Germany’s DAX gained 0.6 percent, buoyed by trade optimism, though it had been down 1% the previous day.

The UK’s FTSE 100 increased by 0.5 percent, hitting a record high.

Other major indices, such as France’s CAC 40, also traded higher, though specific gains for the day were not detailed in the sources.