US stocks rose on Monday as renewed optimism around trade helped push Wall Street toward closing out a strong month with fresh record highs.
The Dow Jones Industrial Average gained 209 points, or 0.5%, while the S&P 500 added 0.5%, extending gains after hitting record levels in the previous session.
The Nasdaq Composite advanced 0.55%, also reaching new all-time highs.
The rally follows Canada’s decision to scrap its proposed digital services tax, a move aimed at reengaging in trade negotiations with the United States.
The tax would have retroactively targeted US tech firms, including Google, Meta, and Amazon, with initial payments scheduled to begin Monday.
President Donald Trump had previously said the US was “terminating ALL discussions on Trade with Canada,” but Canada’s reversal appears to have eased tensions.
Shares of Meta Platforms and Google-parent Alphabet rose in response.
Monday marks the final trading day of June, capping off a sharp monthly recovery for equities.
The S&P 500 is up 4.7% for the month, the Nasdaq has climbed 6.5%, and the Dow has gained around 4%. Both the S&P 500 and Nasdaq closed at all-time highs on Friday.
The rebound follows a difficult stretch earlier in the year, when trade and tariff concerns pushed the S&P 500 down nearly 18% from its peak in April.
Investors are also watching developments in Washington, where the Senate is weighing President Trump’s sweeping legislative package.
The bill, described by Trump as “one big, beautiful” legislation, passed a key procedural vote over the weekend but still faces hurdles in the House, where some Republican lawmakers have expressed reservations about recent changes.
US-Canada trade truce
The United States and Canada have reached a temporary truce in their recent trade dispute, with Canada agreeing to withdraw its proposed digital services tax and resume trade negotiations with Washington.
The move marks a step toward easing months of tension between the two close allies.
The proposed 3% levy, which would have been retroactively applied to US tech companies such as Google, Meta, and Amazon dating back to 2022, had prompted President Donald Trump to halt talks with Canada over the issue.
Canadian Prime Minister Mark Carney announced that discussions would resume, with the goal of reaching a broader economic and security agreement by July 21.
“In our negotiations on a new economic and security relationship between Canada and the United States, Canada’s new government will always be guided by the overall contribution of any possible agreement to the best interests of Canadian workers and businesses,” Carney said in a statement.
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