Wall Street opens higher; major indexes set fresh records

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US markets kicked off the final trading session of the week on a strong note. The S&P 500 gained 0.4%, the Nasdaq Composite climbed 0.6%, and the Dow Jones Industrial Average advanced 134 points, or 0.3%. All three benchmarks touched new record highs at the open.

The upbeat sentiment comes as investors balance resilient U.S. economic data, cooling inflation trends, and expectations that the Federal Reserve may move closer to rate cuts later this year. Strength in heavyweight technology stocks continues to fuel broader market momentum, keeping Wall Street on track for another winning week.

Treasury yields tumbled, with short-dated bonds set for their lowest close since 2022, while the dollar weakened against major peers.

On the trade front, US President Donald Trump signed an executive order cutting US tariffs on Japanese autos and parts to 15% from 25%, part of a new bilateral pact.

Overseas, stocks in Europe and Asia-Pacific rose, with Chinese markets rebounding after Thursday’s regulatory-driven slump.

European Markets Edge Higher

European equities also traded higher on Friday, supported by optimism around potential US rate cuts and easing bond yields. The Stoxx 600 was up about 0.3%, with gains led by technology shares. Germany’s DAX and France’s CAC 40 inched up, while UK’s FTSE 100 rose nearly 0.3%.

In London, industrials, banks and miners such as Babcock, HSBC and Rio Tinto helped lift the FTSE 100, though consumer staples like Tesco and Unilever lagged. The mid-cap FTSE 250 also rose about 0.3%, even as it remained on course for a weekly decline.

Technology stocks were the standout across the region. Sweden’s Hexagon jumped after announcing a USD 3.16 billion deal with U.S.-based Cadence Design, lifting the broader tech sector. However, Switzerland’s Temenos slumped over 12% following the resignation of its CEO.

Overall, both US and European investors are now awaiting the US non-farm payrolls data due later today, which could be a key trigger for the Federal Reserve’s next policy steps.