Why is the US stock market climbing again as June wraps up?
Investors are increasingly confident that President Trump will secure new trade agreements, which could ease global economic tensions. After a tense spring driven by tariff threats and global uncertainty, markets have now bounced back with strength. The S&P 500’s 0.2% gain on Monday continues a trend that began earlier in June, when it rebounded fully from a steep spring decline of around 20%.
This resilience is closely tied to hopes of de-escalating trade disputes. Trump has made it clear he expects better deals and fewer taxes on US technology and exports. These expectations are giving traders more reason to stay in the market and look ahead with optimism.
How are the major indexes performing?
- S&P 500 (via SPY ETF): Trading around $616.22, nearly flat for the day, with intraday highs near $617.87 and lows near $615.72.
- Nasdaq Composite (via QQQ ETF): Hovering around $550.25, showing small gains, with a session high of $552.23.
- Dow Jones Industrial Average (via DIA ETF): Around $439.28, slightly higher, moving between $438.97 and $440.63 intraday.
What’s moving the stock market today?
- S&P 500 and Nasdaq are near all-time highs, helped by strength in tech, finance, and optimism over trade relations.
- Dow futures surged by around 0.6%, with major stocks like Goldman Sachs rising about 2.5% and Walt Disney up by roughly 1.2%, contributing nearly 200 points to the index.
Why is investor sentiment improving?
- Canada has officially pulled back its digital services tax aimed at US tech firms, easing trade tensions and lifting confidence in global negotiations.
- Investors are hopeful that the US and Canada could reach a trade deal by mid-July, following signs of resumed talks after recent friction.
What economic data is on the radar?
- The market is awaiting Thursday’s nonfarm payroll report, expected to show around 115,000 new jobs with unemployment near 4.3%.
- Treasury yields dipped slightly, with the 10-year yield trading near 4.25%, suggesting stable expectations on interest rates.
- Positive movement in corporate activity, including recent mergers and acquisitions, is also pushing financial and tech stocks higher.
What role did Canada’s policy reversal play in boosting US stocks?
Canada announced that it’s pulling back a planned tax on US technology companies, a move that eased tensions with the United States. President Trump, who had halted trade discussions with Canada over what he called a “direct and blatant attack” via the tax policy, welcomed the reversal. The Canadian government also confirmed it’s resuming trade talks with Washington, signaling a possible breakthrough.
For Wall Street, this development was crucial. Tech companies like Apple, Google, and Amazon are heavily weighted in stock indices, so any news affecting them tends to ripple across the market. With the tax threat off the table, tech stocks got a boost, lifting the Nasdaq composite by 0.2% in early trading.
What drove the stock market higher today?
Markets surged on a mix of bullish news:
- Trade optimism: Canada has backed away from its planned digital services tax targeting US tech giants. That move defused a brewing tariff war and raised hopes for a broader trade agreement by late July.
- Fed rate cut hopes: Inflation continues to cool. May’s PCE report showed prices dipping by 0.3%, while core inflation ticked up just 0.2%. The data strengthened expectations that the Federal Reserve might start cutting rates as early as September.
- Fiscal stimulus buzz: A major Republican-backed tax-and-spending package, potentially worth $3 to $4.5 trillion, is gaining traction in the Senate, adding to the bullish momentum.
- Strong tech and bank earnings: AI leaders and chip stocks like Nvidia and Palantir soared, while big banks — including JPMorgan, Bank of America, and Wells Fargo — rallied after passing the Fed’s annual stress tests.
How did the major indexes perform?
- S&P 500: Closed at 6,173.07, a new all-time high.
- Dow Jones: Jumped 432 points to 43,819.27, up about 1%.
- Nasdaq Composite: Finished at 20,273.46, also a record close.
All three indexes posted strong monthly gains in June, with the Nasdaq and S&P 500 up 4–6% and the Dow up around 3–3.7%.
Which stocks led the charge?
- Tech: Palantir soared over 5%. Broadcom added 2% as AI-driven demand remained strong.
- Banks: JPMorgan, Bank of America, and Wells Fargo were among the biggest gainers after regulators gave the green light to their balance sheets.
- Consumer & industrials: Stocks in these sectors also rallied as investor confidence climbed.
What about sector performance?
- Top gainers: Consumer discretionary (+1.7%), communication services (+1.2%), and industrials (+1%).
- Biggest laggard: Energy (-0.5%), weighed down by a drop in oil prices.
Key economic data at a glance
- May PCE inflation:
- Headline: -0.3%
- Core: +0.2%
- Year-over-year: Headline +2.3%, Core +2.7%
- Personal income: -0.4%
- Personal spending: -0.1%
- Savings rate: 4.5%
- Consumer sentiment: University of Michigan index rose to 60.7
- 10-year Treasury yield: 4.26%, slightly lower than last week
- US dollar index: Dipped to around 97.25
Where are commodities headed?
- WTI crude: Down 1% to around $64.60 per barrel
- Brent crude: ~$67.10 per barrel
- Gold: Slightly higher at $3,295/oz
How is Trump’s trade strategy affecting Wall Street confidence?
A large part of the stock market’s recovery since spring has hinged on the belief that President Trump’s hardline stance on trade is aimed at getting better deals—not starting a prolonged economic conflict. His administration’s strategy of using tariffs as leverage seems to be working, at least in Canada’s case, and traders are now betting that other nations might also return to the negotiating table.
This trade optimism is what’s fueling market gains, especially in sectors sensitive to international policy, such as technology, manufacturing, and energy. Investors are responding not just to data, but to policy signals and Trump’s continued influence on global trade.
Are we seeing a broader recovery in the US stock market?
Yes, and it’s more than just a bounce. The Dow Jones is now up over 150 points, reflecting a wider upward trend across major indices. The market’s current momentum is also supported by easing inflation fears, steady job growth, and strong corporate earnings forecasts for the upcoming quarter.
Notably, June marks the second month of consecutive gains for US stocks. The rally indicates that investors have largely shaken off spring’s fears over inflation spikes and geopolitical tension. The broader market sentiment is shifting toward confidence—fueled by signs of cooperation on trade and positive movement in global markets.
What should investors watch as the second half of 2025 begins?
As we head into July, the focus will remain on how trade negotiations develop and whether Trump can secure more deals with global partners. Key economic indicators, such as June’s jobs report, inflation numbers, and corporate earnings, will also be watched closely. Analysts are expecting a moderate but stable economic outlook, barring any major geopolitical shocks.
It’s also important to note that Independence Day trading hours will shorten this week, and volume might dip temporarily. However, if the upward trend continues and trade diplomacy holds, the US stock market could be setting up for a strong second half of the year.
- Dow Jones Industrial Average: +142 points (+0.3%)
- S&P 500: +0.2% (at record highs)
- Nasdaq Composite: +0.2%
- Canada: Rescinds tax on US tech firms, resumes trade talks
- President Trump: Suspended talks last week, now signaling possible deals
Stay tuned for live stock market updates, as Wall Street closes out June on a high and shifts focus to Trump’s next moves in trade diplomacy.
FAQs:
Q1: Why is the US stock market rising today?
US stocks rose as Trump’s trade moves boosted investor confidence.
Q2: What pushed the Dow Jones up 150 points?
Canada’s tax reversal and trade talks lifted Dow by 150 points.
