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Global financial markets extended their powerful rally on Wednesday, buoyed by the aftershocks of a landmark U.S.-Japan trade deal announced earlier in the week. The agreement ignited optimism across sectors and regions, leading to continued gains in equities, a copper breakout, and renewed anticipation around upcoming tech earnings. U.S. Stocks Set New Records as Trade Optimism Fuels Broader Rally The momentum from July 22-23 carried decisively into July 24, with investors doubling down on risk assets following President Donald Trump’s announcement of a transformative trade agreement with Japan. The deal, which slashes proposed U.S. auto tariffs and liberalizes Japan’s agricultural and digital markets, continued to act as a powerful catalyst for equity markets. On July 24, the S&P 500 closed at another all-time high, up 0.7%, marking its fourth consecutive record and pushing its year-to-date gains to over 17%. The Dow Jones Industrial Average jumped 0.9%, surpassing the 45,000 mark for the first time in history, while the Nasdaq Composite rose 0.8%, regaining momentum after briefly cooling on July 22. The broad-based gains on July 24 suggest that investors are increasingly confident that trade tensions may ease, and the market rally is no longer solely reliant on mega-cap technology stocks. Industrials, financials, and consumer discretionary sectors all saw significant inflows, underlining a shift toward broader participation. Copper Surges to 12-Month High as Industrial Optimism Mounts In commodities, copper prices soared to $5.87 per pound, reaching a fresh 52-week high. The industrial metal surged nearly 3% on the day, supported by expectations of tighter global supply and increased infrastructure demand tied to Japan’s pledged $550 billion investment in U.S. tech and industrial sectors. The rally in copper reflects growing confidence in global industrial growth and stands in stark contrast to the energy market, where crude oil remained under pressure, with WTI closing near $64.80 amid lingering demand concerns and profit-taking ahead of the next OPEC+ meeting. Gold Stabilizes After Dip, Remains in Bullish Territory Gold prices showed resilience on July 24 after an initial pullback, rebounding from intraday lows to settle around $3,425 per ounce. While trade optimism initially softened safe-haven demand, persistent concerns over Federal Reserve policy credibility and long-term geopolitical volatility continue to support gold’s bullish structure. Meme Stocks and Tech Earnings Build Anticipation Retail enthusiasm was also back in the spotlight. Meme stocks like GoPro (GPRO) and Krispy Kreme (DNUT) continued their rallies, fueled by social media hype and short-squeeze momentum. GoPro gained over 12% on July 24 following a 46% surge the day prior, as Reddit threads and speculative options trading pushed the stock to multi-month highs. Investors are now keenly focused on after-hours earnings from Tesla (TSLA), Alphabet (GOOGL), and IBM (IBM). Tesla in particular is expected to show significant stock movement, with options pricing in a large post-earnings swing. These results will set the tone for the rest of the "Magnificent Seven" tech giants reporting over the next few weeks. Global Reaction: Asia and Europe Join the Rally Asian equities continued their upward climb on July 24, with Japan’s Nikkei 225 up an additional 1.2%, following its 3.5% surge on July 23. The Japanese yen weakened slightly, aiding exporters, while Japanese automaker stocks like Toyota, Honda, and Nissan extended their gains. In Europe, the Stoxx 600 added 0.6%, driven by gains in industrials and consumer goods. Investor sentiment across the continent improved on hopes that the U.S. could strike similar trade deals with the EU and other Asian economies. Conclusion: A Market Riding Trade Optimism, but Watching for Hurdles The market’s strength on July 24 reinforces the power of geopolitical breakthroughs to drive investor sentiment. The U.S.-Japan trade deal provided much-needed clarity on tariffs and digital trade, while also giving a tangible boost to sectors like autos, agriculture, and tech infrastructure. However, underlying caution remains. The market’s sharp focus will now turn to tech earnings, potential U.S.-China trade discussions, and lingering inflation and interest rate questions. With global markets entering a pivotal phase, July 24 may be remembered not just as a day of celebration, but as a key inflection point in the 2025 market narrative.

Global Markets Extend Rally on July 24 Amid U.S.-Japan Trade Optimism, Copper Boom, and Tech Anticipation

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