The S&P 500 and the Dow followed their global counterparts higher on Thursday, and Treasury yields reversed their three-day slide after a trade deal between the United States and Japan provided a welcome sign of progress in President Donald Trump's multi-front tariff negotiations.

Asian shares rallied on Wednesday, with Tokyo’s benchmark Nikkei 225 index up more than 3% after Japan and the U.S. announced a deal on President Donald Trump’s tariffs.

“The main lesson about tariffs so far is that passthrough to consumer prices is tracking somewhat lower than in 2019,” according to Goldman Sachs economist David Mericle.

Anticipated earnings reports from the world’s largest stocks boosted the S&P 500 and Nasdaq to new all-time highs Monday, marking the latest records for both indexes in recent weeks, though one analyst warned investor optimism might be short-lived as others say AI firms could propel the rally even more.