US stocks surged to record highs on Friday, marking a strong rebound from the April 2025 downturn. The rally was driven by optimism surrounding trade developments and mounting expectations of interest rate cuts, which bolstered market confidence. The S&P 500 climbed 0.70%, setting a new all-time high and surpassing its previous February peak. The Nasdaq 100 advanced 0.60%, also reaching a fresh record, while the Dow Jones Industrial Average jumped more than 550 points, reflecting gains across multiple sectors. Although inflation came in slightly above forecasts, markets appeared reassured that underlying price pressures remain contained—keeping the possibility of Federal Reserve rate cuts firmly in play. Among major movers, Nvidia gained 1.70%, closing at a new record high. Microsoft briefly hit an all-time high before ending the session flat. Nike soared 13% on the back of strong earnings, while Amazon added 1.10% after being upgraded by analysts.

European markets ended sharply higher, following global gains as signs emerged that the US may adopt a softer stance on tariffs. The Eurozone’s STOXX 50 climbed 1.50% to 5 320, while the broader STOXX 600 rose 1.10% to 543. The rally followed news of a US-China trade agreement that avoids the harsh tariffs previously threatened. This coincided with EU efforts to resolve earlier trade tensions with Washington. All sectors advanced, with industrials leading the way—Siemens jumped 6.50% and Schneider Electric added 3.60%. Automakers like BMW, Mercedes-Benz and Stellantis each rose over 4.50%. 

In the UK, the FTSE 100 gained 0.72% to end at 8 798.91. Bank stocks also rallied as geopolitical tensions eased and trade optimism grew, with Standard Chartered and Barclays rising over 2% and HSBC up nearly 1%. Rolls-Royce, AstraZeneca, Shell, Unilever, and Relx also posted solid gains. Despite the strong session, the FTSE 100 recorded its second straight weekly decline—its first such streak since April. Frankfurt's DAX gained further ground, closing about 1.60% firmer at 24 033, in line with European and global peers.

On the commodities front, gold fell by 2.08% on Friday to trade at $3 273.15 per ounce, recording its second consecutive weekly loss. The decline was driven by easing geopolitical tensions and improving global trade prospects, which reduced demand for traditional safe-haven assets. Platinum also posted a steep drop of 4.18%, settling at $1 339.45. Meanwhile, Brent crude edged up by 0.10% to $67.80 per barrel.

Asian markets ended mixed on Friday, amid global optimism over trade developments and expectations of US interest rate cuts. Japan’s Nikkei 225 led regional gains, rising by 1.43% to a five-month high, closing at 40 150.79, supported by strength in the tech sector and easing inflation. In contrast, Hong Kong’s Hang Seng Index edged down 0.33%, while China’s Shanghai Composite fell 0.71%.

South African markets showed a mixed performance, with the All Share index falling 0.11% and the JSE Top 40 slipping by 0.21%, while JSE Industrials 25 rose by 0.49%. The JSE Financial 15 gained 1.56%. The rand strengthened slightly, trading around R17.84 against the US dollar, up by 0.09%.