EU, July 25 (V7N) — The S&P 500 and Nasdaq both closed at all-time highs on Friday, underpinned by growing optimism that the U.S. and European Union may finalize a framework trade deal soon. European Commission President Ursula von der Leyen is scheduled to meet U.S. President Donald Trump this weekend in Scotland, amid hopes of reaching an agreement by the upcoming August 1 tariff deadline. Trump has pegged the odds of a deal at about 50‑50. 
 
Deckers Outdoor—maker of UGG and Hoka footwear—led the S&P 500’s gainers, with shares soaring over 11% after the company posted stronger-than-expected earnings and robust international demand. At the same time, Intel plummeted 8.5% after warning of larger-than-expected losses and announcing major layoffs. 
 
The S&P 500 rose 0.4% to close at 6,388.64, the Nasdaq added 0.2% to finish at 21,108.32, and the Dow gained 0.5%, landing at 44,901.92. Nine of eleven major S&P sectors ended higher, with materials and industrials leading the gains. The S&P 500 achieved its fifth straight record close—a milestone not seen since November 2021. 
 
Analysts say the rally reflects strong Q2 corporate earnings—over 80% of S&P 500 firms exceeded earnings expectations—as well as the prospect of fresh trade agreements with partners like Japan and the Philippines. Still, some caution that if the EU deal doesn’t materialize, investor sentiment could falter. 
 
Attention now shifts to the Federal Reserve’s upcoming meeting, where policymakers are expected to hold interest rates steady as trade-related inflation risks remain under scrutiny. Traders are placing nearly a 60% probability on a rate cut in September. 
 
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