S&P 500 Continues to Rise Amid Investor Optimism for Trade Talks
U.S. stocks saw an uptick in early trading on Monday, as the S&P 500 aimed for new highs amid a wave of positive sentiment stemming from trade negotiations that buoyed major indices.
After reaching record highs the previous week, attributed to reduced geopolitical tensions and investor expectations of rate cuts, the S&P 500 opened 0.3% in the green.
Moreover, strong market optimism propelled the Dow Jones Industrial Average up by 200 points, while the Nasdaq advanced by 0.4%. All primary stock market indicators are poised for potential all-time highs, as Wall Street sets out to close June and the second quarter of 2025 on a positive note.
Trade Agreements and Tariffs
This encouraging sentiment in stocks stems from growing optimism that the United States is nearing pivotal trade agreements with key global partners.
Besides China, the United Kingdom, and the European Union, Canada is also involved in these discussions. The U.S. has existing trade agreements with China and the UK; however, the looming July 9 deadline for comprehensive deals or the reinstatement of reciprocal tariffs is approaching quickly.
In an appearance on CNBC Monday, Nicholas Burns, a professor at Harvard’s Belfer Center and former U.S. Ambassador to China, noted that while a comprehensive deal between the U.S. and China may not be imminent, the current situation offers the U.S. an opportunity to strengthen its position with China.
In an interview on ‘Squawk Box’, he remarked:
“We need more leverage on our side of the table, and it’s there for the taking if we make China the centerpiece of this.”
Additionally, there’s a possibility of renewed talks between Canada and the U.S. following the Canadian government’s decision to cancel a retroactive digital services tax targeting American tech firms.
Last week, President Donald Trump urged a halt to any engagements, denouncing the digital services tax as a “blatant attack” on America. This announcement contributed to a surge in tech stocks.
