On Monday, U.S. stocks saw a substantial rise, building on the significant gains of the previous week. This was primarily due to the U.S. government's softer approach on tariffs, which allowed markets to shift their focus towards potential multiple interest rate cuts by the Federal Reserve this year. Both the S&P 500 and the Nasdaq 100 climbed approximately 0.5%, achieving new record highs, while the Dow Jones Industrial Average increased by over 200 points.
White House officials announced a formal agreement between the U.S. and China, aiming to prevent the reimposition of tariffs that had previously reached a peak of 145%. President Trump also indicated a willingness to extend the July 9th deadline for reinstating reciprocal tariffs, expressing optimism that significant agreements would be finalized before that date.
Furthermore, Canada retracted its digital services tax, a move seen as benefiting U.S. tech companies and facilitating renewed trade discussions with Washington. As a result, tech giants Meta and Alphabet saw gains of 1% each. Additionally, Juniper Networks' stock surged by 9% following the Department of Justice's settlement of its lawsuit concerning the company's acquisition by HP.
