05:05 PM EDT, 07/23/2025 (MT Newswires) -- The S&P 500 reached a new record on Wednesday amid hopes that the US would finalize more trade deals ahead of an upcoming tariffs deadline.

The benchmark equity index rose 0.8% to 6,358.9, settling at a new high for the third straight day. The Dow Jones Industrial Average closed 1.1% higher at 45,010.3, while the Nasdaq Composite was up 0.6% at 21,020. Barring utilities and consumer staples, all sectors were in the green, led by health care.

Japan agreed to pay 15% in tariffs on its exports to the US, President Donald Trump said in a social media post Tuesday. Japan will invest $550 billion in the US, "which will receive 90% of the profits" as part of the trade deal, according to Trump.

"The US-Japan deal has some read-throughs to other prospective deals, insofar as it suggests that Trump is still willing to make deals. It didn't seem that way two week ago," Macquarie strategists Thierry Wizman and Gareth Berry wrote in a Wednesday note. "If Trump has, in fact, loosened up on dealmaking, the set-up is better for other deals too, such as the pending deals with the (European Union) and Korea."

The US and the EU are nearing a trade deal that would set 15% tariffs on European imports, the Financial Times reported Wednesday, citing sources.

"We've already seen trade deals with the Philippines and Indonesia," ING wrote in a note. "Before 1 August, there should be more deals struck with Asian exporters."

US Treasury yields were higher, with the two-year rate gaining 4.3 basis points to 3.9% and the 10-year rate rising 3.7 basis points to 4.39%.

In company news, Lamb Weston ( LW ) shares surged 16%, the top gainer on the S&P 500, after the frozen potato products supplier logged fiscal fourth-quarter results above Wall Street's estimates and announced a cost-savings program to enhance profitability.

Thermo Fisher Scientific ( TMO ) was among the best performers on the S&P 500, up 9.1%. The medical device manufacturer raised its full-year guidance as its second-quarter results surpassed the Street's estimates.

Texas Instruments ( TXN ) shares slumped 13%, among the worst S&P 500 performers. The semiconductor manufacturer late Tuesday issued a third-quarter earnings outlook below market estimates at the midpoint amid uncertainties related to tariffs and geopolitics.

West Texas Intermediate crude oil was up 0.2% at $65.43 a barrel in Wednesday late-afternoon trade.

Commercial crude stockpiles in the US decreased more than projected last week as motor gasoline and propane inventories dropped, government data showed Wednesday.

In other economic news, existing home sales in the US decreased more than projected in June as prices reached a record high for the month, according to data from the National Association of Realtors.

"We look for sales to move sideways over the balance of 2025, before recovering in 2026 as rate cuts by the Federal Reserve get underway in earnest," Oxford Economics said.

Markets widely expect the US central bank to keep interest rates unchanged next week, according to the CME FedWatch tool.

Mortgage applications in the US increased last week even as the 30-year fixed rate on conforming loans reached the highest level in four weeks, the Mortgage Bankers Association said.

Gold was down 1.3% at $3,399.4 per troy ounce, while silver was up 0.1% at $39.58 per ounce.