US stocks hit new highs amid trade deal optimism as countries face July 9 tariff deadline

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Investors are keeping a close eye on US President Donald Trump's July 9 deadline for countries, including India. The July 9 deadline marks the end of President Trump’s 90-day suspension of the “Liberation Day” country-specific tariffs, originally announced on April 2.
US stocks hit new highs amid trade deal optimism as countries face July 9 tariff deadline
U.S President Donald Trump  Credits: FILE

The three key indexes in the US, S&P 500, Nasdaq, and Dow Jones, hit new highs on Monday over optimism regarding potential trade deals with key trading partners as the July 9 deadline approaches. On Monday, the blue-chip Dow surged 0.41% or 181.27 points to 44,000.54 at 12:01 pm ET. The index has risen a record 2.79% or 1,193.41 points in the past week.

The S&P 500 gained 16.96 points, or 0.27%, to 6,1897.50, recording a 2.12% surge in the past week. The tech-heavy Nasdaq Composite gained 62.65 points or 0.31%, to 20,335.78 at 12:12 pm E.T.

The Nasdaq, S&P 500, and Dow Jones have gained 17.5%, 10.2%, and 4.6% so far in the quarter, according to Reuters, though these have seen mixed results since last year, with various flip-flops in the US trade policy. As a result, the three indices are still at their lowest in terms of first-half performance since 2022.

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Investors are keeping a close eye on US President Donald Trump's July 9 deadline for countries, including India. The July 9 deadline marks the end of President Trump’s 90-day suspension of the “Liberation Day” country-specific tariffs, originally announced on April 2.

U.S. President Donald Trump has indicated he does not intend to prolong the 90-day suspension on tariffs for most countries past July 9, the date marking the end of the negotiation window he established. He said his administration will inform countries that trade penalties will be enforced if agreements with the United States are not reached.

According to Trump, letters will begin being sent out “pretty soon” ahead of the upcoming deadline. However, Reuters reported Trump as saying that he could either extend the tariff deadline or "make it shorter".

With this, there is only one week left for India to escape the tariff shock by agreeing to a mini trade deal with the United States. However, a hurried deal, if it happens, could hurt the interests of some—especially in the agricultural sector—stakeholders fear.

Meanwhile, on the domestic front, after four straight sessions of gains, Indian equity benchmarks closed lower on Monday, weighed down by selling in index heavyweights including Reliance Industries, Axis Bank, Kotak Mahindra Bank, Maruti Suzuki, and UltraTech Cement.

According to provisional data, the BSE Sensex slipped 451 points to settle at 83,608, while the NSE Nifty declined 120.75 points to close at 25,517. In contrast, the broader market showed resilience, with the Nifty MidCap and Nifty SmallCap indices rising up to 0.6% by the close.

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