Stocks Hit Record Highs After Japan Trade Deal

US stocks rose to more records Wednesday following a trade deal between the world's No. 1 and No. 4 economies.

• The S&P 500 rose 49.29 points, or 0.8%, to 6,358.9, setting another all-time high.
• The Dow Jones Industrial Average rose 507.85 points, or 1.1%, to 45,010.29, four points short of December's all-time high.
• The Nasdaq composite rose 127.33 points, or 0.6%, to 21,020.02, also hitting a record.

Stocks rallied even more in Tokyo after President Trump announced a deal that would place a 15% tax on imports from Japan, the AP reports. That's lower than the 25% tariff rate Trump threatened earlier this month. "It's a sign of the times that markets would cheer 15% tariffs," said Brian Jacobsen, chief economist at Annex Wealth Management. "A year ago, that level of tariffs would be shocking. Today, we breathe a sigh of relief."

Most of the stocks on Wall Street rose, including a 14.6% jump for GE Vernova's stock. The energy company not only delivered a stronger profit than analysts expected, it also raised its forecasts for revenue from its power and electrification businesses. GE Vernova said that the inflation it's expecting to see as a result of tariffs may be trending toward the lower end of $300 million to $400 million. Lamb Weston rallied 16.3% after the supplier of French fries and other potato products delivered better results for the latest quarter than analysts expected and said it expects customers will continue to eat fries even with an uncertain economy.

Hasbro took a $1 billion, non-cash hit to its results for the spring to write down the value of some of its assets following a review triggered by the implementation of tariffs. It said tariffs have had no impact yet on how much profit it's making from each $1 of its sales, but it expects to see costs ramp u[ during the current quarter. Hasbro's stock fell 0.9% even though it reported a stronger profit for the latest quarter than analysts expected, when not including the $1 billion charge. Texas Instruments' stock also fell despite delivering results for the latest quarter that were above analysts' expectations. Analysts pointed to some cautious commentary from Texas Instruments executives about how the uncertainty created by tariffs could slow demand. Its stock sank 13.3%.

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Elsewhere on Wall Street, several stocks jumped as traders searched for the next "meme stock" that could ride a wave of online enthusiasm to high prices, regardless of what the company's profits are doing. Krispy Kreme, which came into the day with a 58.4% loss for the year so far, jumped nearly 39% shortly after trading began. It gave back most of those gains as the day continued and was up 4.6% at the end of the day. GoPro rose 12.4%. Other potential meme stocks lost their momentum. Opendoor Technologies, which had more than tripled between the last two Mondays, fell 20.5%.