US stocks rallied to record highs on Friday, capping a remarkable comeback from the April selloff, as optimism over trade agreements and growing expectations for interest rate cuts fueled market momentum. The S&P 500 rose 0.7% to a new all-time, surpassing its February peak, the Nasdaq 100 also hit fresh record, climbing 0.6%. The Dow Jones gained over 550 points, supported by broad-based strength. Positive sentiment was reinforced by news that the US and China had finalized a trade framework, including an agreement for rare earth exports, while deals with other key trading partners are reportedly close. Despite a slightly hotter-than-expected inflation reading, markets took comfort in signs that price pressures remain moderate enough to keep Fed rate cuts on the table. Tech giant Nvidia rose 1.7% to notch a fresh record high, while Microsoft briefly touched a new peak before hovering flat. Nike surged 13% following strong earnings, and Amazon climbed 1.1% after receiving an upgrade.