Trade deals fuel Wall Street gains while Trump renews Fed attack
Benzinga
| Detroit Free Press
Citgroup, Bank of America top profit forecasts on strong trading revenue
Wall Street banks posted strong quarterly results as they benefited from volatile markets in the first three months of 2025. Citigroup and Bank of America topped estimates for first-quarter profit on a surge in stock trading.
- The U.S. finalized new trade agreements with Indonesia, the Philippines and Japan.
- President Donald Trump signed an executive order to boost the U.S. artificial intelligence sector.
Wall Street closed the week higher, with tech-heavy indices notching fresh records as upbeat corporate earnings, resilient macro data and breakthrough trade deals converged to boost risk appetite.
The U.S. finalized new trade agreements with Indonesia, the Philippines and Japan. The Tokyo deal was the most significant, locking in a reduction in tariffs on Japanese autos and goods from 25% to 15%, while Japan pledged $550 billion in investment and improved access to American-made goods.
A U.S.-EU trade deal is now reportedly close, expected to align with the Japan framework and potentially ease existing tariff rates ahead of the Aug. 1 deadline.
Separately, President Donald Trump signed an executive order to boost the U.S. artificial intelligence sector by promoting the export of full-stack AI systems to trusted global partners. The White House said the move is aimed at strengthening economic leadership and national security.
Among the week’s strongest performers, Thermo Fisher Scientific rallied over 12%, topping the leaderboard for large-cap stocks, followed by T-Mobile US, up 9%.
Within the Magnificent Seven, Alphabet rose by 1% after delivering better-than-expected results and raising its 2025 capex outlook by $10 billion, reinforcing its commitment to scaling AI infrastructure.
Tesla dropped 8.2% following cautious commentary from CEO Elon Musk, who warned that upcoming quarters could prove challenging amid rising costs and margin pressures.
Economic indicators added fuel to the rally. U.S. business activity surprised to the upside, with the Composite Purchasing Managers’ Index climbing to a seven-month high in July, helped by expansion in services and steady consumer strength.
Trump’s push to influence monetary policy continued with an unannounced visit to the Federal Reserve’s headquarters in Washington, D.C. — the first by a sitting president in nearly 20 years.
Wearing a hard hat alongside Fed Chair Jerome Powell, Trump criticized the central bank’s renovation project, claiming costs had surged to $3.1 billion. Powell countered on the spot, clarifying that the real cost is closer to $2.5 billion, excluding unrelated construction.
Pressed on rate policy, Trump said, “I’d love to see him lower interest rates.”
Markets now shift focus to the July 30 Fed meeting, where expectations remain anchored for a hold — but not without growing political heat.
Benzinga is a financial news and data company headquartered in Detroit.
