Dow rallies as markets cheer US-Japan trade agreement

Stocks rallied in early-morning trading on Wednesday, with the Dow Jones Industrial Average adding more than 200 points at the open.

Investors appeared to welcome President Donald Trump’s announcement that the U.S. had reached a trade deal with Japan.

The Dow Jones Industrial Average rose nearly 240 points, and the S&P 500 inched higher by 0.4% to extend gains at its record highs. Optimism of potentially more trade agreements ahead of Trump’s Aug. 1 tariffs deadline also saw the Nasdaq Composite edge up, adding a modest 0.16% in early trading.

‘Never been anything like it,’ Trump boasts

With corporate earnings, spotlighted by Tesla (TSLA) and Alphabet (GOOGL, GOOG), set to hit the market after the bell, early cheers had futures across the major U.S. indices flashing rising green.

Upbeat sentiment on Wall Street carried through the Asia and European sessions, investors are envisioning the U.S.-Japan deal as a huge one. 

In addition to the 15% tariff on Japanese imports, Trump’s administration managed to secure a $550 billion Japanese investment in the U.S.