The markets soared to record highs on Friday, despite the "predictions" (or partisan rooting interest) of the liberal establishment.

Part of the rally is due to falling, get this, inflation.

U.S. markets surged to fresh record highs Friday as investors responded positively to a trio of developments: easing inflation, the formal end of the Iran-Israel war, and progress on President Trump's tax legislation in Congress.

Key Details:

The S&P 500 closed at a record 6,173.07, with the Dow and Nasdaq also finishing at all-time highs, fueled by strength in tech, energy, and industrial sectors.
New inflation data showed core PCE rose just 0.2% in May, with annual core inflation at 2.7%--supporting Trump's argument that tariffs haven't reignited price pressures.
A U.S.-brokered peace deal officially ended hostilities between Israel and Iran, removing a key global risk and driving oil prices sharply lower.

Diving Deeper:

Wall Street ended the week on a high note Friday, with all three major indexes closing at record levels amid a cascade of favorable developments for the Trump White House and the broader U.S. economy.

The S&P 500 rose 0.52% to 6,173.07, while the Dow Jones Industrial Average and Nasdaq Composite followed suit, hitting new peaks. The gains came despite a midday dip sparked by President Trump's announcement that trade negotiations with Canada had been terminated. Markets quickly shrugged off the news, rallying strongly into the close.

Fueling the optimism was the release of new inflation data showing that prices are rising more slowly than anticipated, even after the administration's aggressive use of tariffs. The core personal consumption expenditures (PCE) index--a key inflation gauge favored by the Federal Reserve--ticked up just 0.2% in May. On an annual basis, core prices rose 2.7%, while the headline rate stood at 2.3%. Notably, consumer inflation expectations also dropped, with one prominent sentiment survey showing the expected one-year rate falling from 6.6% to 5%.

...

As the week closed, the prevailing mood on Wall Street was one of optimism. With inflation cooling, global tensions easing, and economic policy advancing, traders are increasingly betting on a supportive environment for markets heading into the second half of the year.

Gas prices will fall to their lowest level in years for summer driving season.

According to Patrick De Haan, head of petroleum analysis at GasBuddy, gas prices are likely on track to reach their lowest levels in several years. If current trends continue, Americans could see the national average dip below $3 per gallon by September.

"This is shaping up to be the cheapest summer since 2021," De Haan said, referencing the COVID-era market conditions that temporarily deflated demand and prices.

Although gas prices ticked up in early June due to the Israel-Iran conflict, the ceasefire between the two nations has helped stabilize global oil markets. That stabilization, De Haan says, should allow for a "slow decline" in prices through the remainder of the summer.

Torsten Sløk, a chief economist at Apollo Global Management, posted a new note admitting that his initial reaction to the policy may have been wrong.

'Maybe the administration has outsmarted all of us,' he wrote.

The admission comes just months after Sløk warned the tariffs would be 'painful' and economically destabilizing.

Experts speaking to DailyMail.com warned that Americans should take his note with a grain of salt.

But now, he's framing the President's policy as a clever long-game -- one that invites global negotiation while increasing federal revenue.

In the note, Sløk outlined a potential scenario: the White House could maintain its current tariff rates -- 10 percent on most imports, 30 percent on Chinese goods -- and give trade partners a year to negotiate with the White House.

Extending the current 90-day pause on new tariffs, he argued, would give American companies time to plan ahead and could help stabilize markets.

'This would seem like a victory for the world and yet would produce $400 billion of annual revenue for US taxpayers,' he added.

The timing is key. Trump's 90-day pause on new tariffs, announced in April, is set to expire on July 9.

Without an extension, the tariffs would immediately increase, with billions of dollars worth of products suddenly incurring more taxes.

But if the President extends the pause but keeps tariffs where they are, Sløk says the policy could offer clarity for companies and leverage in negotiations.

Sløk's sudden, tepid support for the tariffs is an about-face. He initially criticized the import taxes, saying they threatened business stability, Wall Street's record highs, and the stability of US treasury bonds.

I love when Europeans tell us that tariffs will cause the US inflation and harm our economy while all the European nations have stiff tariffs to keep out US goods because they believe the tariffs help their economies.

Now that inflation has been tamed, Trump wants fed head Powell to reduce the high interest rates he imposed to tame Biden's inflation.

Note that Powell could have, and should have, increased interest rates as soon as Biden proposed his blowout inflationary spending spree. Instead, he waited for years to do so, once inflation was out-of-control and the Biden/Deep State lie that it was "transitory" had been well and truly disproven.

Note he only acted after -- well after -- the damage of Biden's policies was proven.

But now, Powell is saying he wants to keep inflation high because Trump's tariffs will, he claims, cause inflation eventually.

Where was this proactive drive to curb inflation before it takes root when his preferred leftwing "president" Biden was pushing a bonanza of highly-inflationary government spending?