Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., June 25, 2025.

Jeenah Moon | Reuters

Stocks rose on Wednesday as the latest trade developments spurred optimism on Wall Street that the U.S. would reach more deals before its impending tariff deadline.

The Dow Jones Industrial Average added 507.85 points, or 1.14%, ending at 45,010.29 and missing a record close by about four points. The S&P 500 climbed 0.78% for a record close of 6,358.91 — its 12th of the year. The broad-market index also hit a new all-time intraday high in the session. The Nasdaq Composite rose 0.61%, settling at 21,020.02 — its first close above the 21,000 threshold.

Trump said in a Truth Social post Tuesday night that the U.S. had completed a "massive Deal" with Japan. The agreement includes "reciprocal" tariffs of 15% on the nation's exports to the U.S. The president also said the U.S. is meeting with European officials in a push to reach a trade deal with the European Union.

Stocks received a bit of a boost later Wednesday after the Financial Times reported that the U.S. is closing in on a 15% tariff agreement with the European Union, saying that it would echo the U.S.-Japan deal. Bloomberg also confirmed the progress between the U.S. and the EU, citing diplomats briefed on the negotiations.

The U.S. has been looking to reach trade deals with other countries ahead of an Aug. 1 deadline. Earlier this week, the White House revealed that the U.S. and Indonesia agreed to the framework of a trade agreement. That follows a number of other trade agreements the U.S. has reached with other countries, including China and the United Kingdom.

The developments come after Trump on April 2 sent markets into turmoil, with his announcement of sweeping levies that he then pushed off.

"So far, the tariff strategy Trump is pursuing looks very inspired, generating serious income, resulting in major investments in the U.S. to avoid the tariffs, and has yet to cause the disruptions and inflation that the naysayers said were certain," said Louis Navellier, founder and chief investment officer at Navellier & Associates. "The stock market certainly reflects no fear of negative consequences."

Wednesday's moves follow a second straight day concluding at a high for the S&P 500.

The run to new highs has sparked so-called animal spirits on Wall Street, with shares of small companies with brand names and questionable finances getting a bid higher. Kohl's surged on Tuesday, and GoPro and Krispy Kreme jumped on Wednesday.

Investors are awaiting earnings from Alphabet and Tesla expected Wednesday after the bell. They are the first reports of the earnings season from the megacap technology sector, a group that's been closely watched given its market leadership in recent years.