The session results indicate that the tech-heavy Nasdaq rose by 0.47%, the broad S&P500 increased by 0.52%, and the Dow Jones Industrial Average gained 0.63%.
“Investors feel optimistic because they had a very solid quarter and have reasons to feel confident given the easing of trade tensions and concerns about inflation,” commented Sam Stovall of CFRA.
From April to June, the S&P500 gained more than 10% and the Nasdaq over 17%. This was despite the stock market being significantly impacted during this period, particularly in April, by Donald Trump’s protectionist policies.
However, now “investors are optimistic about the announcement of international trade agreements before the July 9 deadline,” after which, in their absence, high tariffs will be applied to imports from major U.S. trade partners, said Jose Torres of Interactive Brokers.
The positive momentum on Wall Street is mainly due to Trump having “restarted trade talks with Canada,” stated Stovall.
On Thursday, the White House stated that Canada “yielded” to Trump by abandoning its tax on tech conglomerates, which had previously led to a halt in negotiations with its neighboring state.
Meanwhile, EU Trade Commissioner Maros Sefcovic is scheduled to visit Washington before July 9 to try to reach an agreement, as announced today.
In addition to potential developments on the trade front, investors have been monitoring progress in Congress regarding Trump’s mega-budget bill, which could be approved any moment in the Senate, following approval in the House of Representatives.
The Congressional Budget Office, responsible for nonpartisan estimates of the legislative impacts on public finances, stated on Sunday that this bill would increase public debt by over three trillion dollars by 2034.
