Stock Rally Builds on Hopes for US-EU Trade Deal: Markets Wrap

A record-breaking run in stocks gained fuel as the US reached a trade agreement with Japan while speculation grew about a similar deal with the European Union. Treasuries halted a five-day rally and the dollar fell as demand for haven assets waned.

The S&P 500 hit all-time highs on news reports the EU and the US are progressing toward an agreement that would set a 15% tariff for most products. In late hours, Alphabet Inc. reported better-than-expected revenue, but said capital expenditures will be higher than previously forecast. Tesla Inc.’s earnings fell short of Wall Street’s estimates.