Slow-Motion Meltup Continues

The S&P 500 and Nasdaq edged up to record high closes today, lifted by Nvidia and GE Vernova. Trump's Tariff Turmoil appears to be subsiding, just as we expected it would during the summer. Investors are welcoming President Donald Trump's recent tariff deals and expect more before the August 1 deadline set by the President. The European Union and the US appear headed toward a trade deal similar to an agreement President Donald Trump struck with Japan. The White House's deal with the EU would include a broad tariff of 15% on EU goods imported into the US. The rate, which could also extend to cars, would mirror the framework agreement the US has struck with Japan.

Leading the S&P 500 higher since mid-2023 have been momentum stocks (chart).