Receding Trade War Fears Drive Wall Street Indexes to New Record Highs

Barry Adams
16 Sep, 2025
New York City

U.S. stocks advanced on Tuesday and attempted to extend gains of the previous two weeks. 

The S&P 500 index edged up 0.1%, and the tech-focused Nasdaq Composite advanced 0.2% amid receding fears of a trade war between the U.S. and China. 

Trade negotiators signaled that the world's two largest economies have reached a preliminary "framework agreement" that could lower trade and investment barriers. 

However, trade economists were skeptical because of the lack of specific details and ambiguous announcements from the U.S. and Chinese trade officials. 

A source in Beijing confirmed that the two sides are far apart on the tariff levels, rare-earth mineral export rules, and agriculture product trade. 

Moreover, the so-called TikTok "agreement" lacks firm and binding conditions and a deadline to complete the financial transaction.

In overseas trading, benchmark indexes in Japan advanced to new record highs ahead of the Bank of Japan's rate decisions on Friday. 

India's Sensex index extended gains of the previous week after the jobless rate dropped to a record low of 5.1% in August and the trade deficit shrank sharply following the steady increase in exports and a decline in crude oil prices. 

The euro hit a new four-year high of $1.18 after the investor sentiment in the Eurozone and Germany surpassed market expectations. 

 

U.S. Stock Movers

Tech stocks led gainers on Tuesday and extended gains of the previous six trading sessions. 

Alphabet Inc. gained 0.9% to $253.99, Tesla Inc. advanced 1.3% to $415.50, and Amazon Inc. inched up 0.4% to $232.90. 

Oracle Corp. jumped 5% to $319.80 following a CBS News report that the software company is a part of a consortium that could acquire control of the China-based TikTok.