Stocks climbed to record highs on Monday as positive momentum continues to build as investors look to close out a month of comebacks.
The S&P 500 Index
Wall Street's upward trajectory follows Canada rescinding its digital service tax, which would have applied to companies such as Amazon
Market participants are paying close attention towards forthcoming trade deal announcements between the United States and major trading partners as Trump's 90-day tariff pause is set to expire next week. Last week, the Trump administration signaled that several deals are imminent and the deadline may not be harsh if nations are continuing to negotiate in good faith.
U.S. Treasury Security Scott Bessent told Bloomberg News on Monday that the Trump administration is open to reverting some countries' tariff rates back to their "Liberation Day" levels past the early July deadline.
"We have countries that are negotiating in good faith, but they should be aware that if we can't get across the line because they are being recalcitrant, then we could spring back to the April 2 level. I hope that won't' happen," Bessent said.
Investors are also closely watching the latest developments of Trump's One Big Beautiful Bill Act in the Senate, which narrowly passed a key vote over the weekend. The Senate's version of the bill, which still needs to be passed again in the House, could add $3.3 trillion to the national debt over a decade, according to an analysis from the Congressional Budget Office.
Monday's session marks the end of June and the second quarter, a period that saw all three major averages recover from their April lows following the initial announcement of Trump's so-called "reciprocal" tariffs on most nations. The S&P 500 rose about 5% for the month and more than 10% for the quarter, bringing the broader market index up nearly 6% year-to-date after briefly falling into a bear market at the start of the quarter. The Nasdaq also rose more than 6% for the month and 18% for the quarter, while the Dow added about 4% and 5%, respectively.
"No one could fault an investor if at one point during the first half of 2025 they shouted, 'Stop the world, I want to get off,'" wrote Sam Stovall, chief investment strategist at CFRA Research, in a note on Monday. "Indeed, 33% of all trading days experienced volatility of 1% or more, versus the 10-year average of 25%, and almost reaching 50% of all days from the peak on February 19 through the end of the near-19% correction on April 8."
Looking ahead, June's jobs report on Thursday will likely drive further market moves for the holiday-shortened week, as investors grew more optimistic that the Federal Reserve could start their rate cutting campaign as soon as their next meeting later in July.
