US stock futures edged higher on Monday, signaling a strong finish to the month of June. The positive sentiment was driven by a tech sector rally, trade optimism, and a surprise move by Canada to scrap its planned digital services tax, which had been a point of friction with the United States.
S&P 500 futures rose 0.4%, Nasdaq 100 futures were up 0.6%, and Dow futures gained 230 points or 0.5%, pointing to a buoyant opening on Wall Street.
Canada’s Digital Tax Decision Eases Trade Tensions
Investor confidence received a further boost after Canada reversed its decision to implement a digital tax, a move that was previously expected to escalate trade tensions with the US.
The rollback appears to have helped restart stalled negotiations, with Canadian PM Mark Carney confirming efforts to reach a trade agreement by July 21 are back on track.
Big tech stocks that were most exposed to the tax — such as Meta Platforms and Alphabet — gained 2% and 1%, respectively, in early trade. Microsoft also rose 0.5% in the premarket, helping drive overall market momentum.
June Ends on a High Note for US Equities
Monday marks the final trading session of what has been a strong month for US stocks.
The S&P 500 is up 4.4% in June, the Nasdaq has jumped 6.1%, and the Dow has climbed 3.7%.
Both the S&P 500 and Nasdaq closed at record highs on Friday, rebounding sharply from April’s lows, when tariff fears had dragged markets down.
Investor Sentiment Turns Bullish Despite Global Concerns
Market experts say the rally continues to defy bearish narratives around Middle East tensions, economic softness, and tariffs.
“Every chance the market had to break down has failed. It continues to do what bull markets do best — climb the wall of worry,” said Ken Mahoney, CEO of Mahoney Asset Management.
All Eyes on Trump’s Spending Bill and Fed Policy
Investors are also watching developments around President Trump’s proposed spending bill, dubbed the “one, big, beautiful” package, which passed an early hurdle in the Senate but still faces opposition in the House.
Meanwhile, Atlanta Fed President Raphael Bostic signaled that a rate cut in July is unlikely, stating that inflation data and tariff impacts will take more time to assess.
“This could be a much more extended period than many expect,” Bostic warned.
Asian Markets Mixed Ahead of Quarter-End
Markets across Asia ended mixed as investors assessed economic data and trade developments.
China’s factory activity contracted for a third straight month, raising hopes for more stimulus.
Japan’s Nikkei surged 0.84%, hitting an 11-month high.
India’s Nifty 50 and Sensex dipped by 0.53% and 0.54%, respectively, in afternoon trade.
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