As a result of optimism that the US would reach trade agreements ahead of a self-imposed deadline the following week and extend tax cuts, Wall Street stocks surged to new records on Monday.
After canceling a tax that had affected US tech companies, which had caused US President Donald Trump to halt discussions, Canada announced on Sunday that it would resume trade negotiations with the United States.
As the July 9 deadline for tariff reprieve approaches, there was more reason to believe that other governments would strike deals with Trump to avoid his steep levies.
Investors are confident that trade agreements will be reached, geopolitical tensions will be easing, and a significant economic slump will be avoided, according to investment analyst Dan Coatsworth of AJ , Bell.
The big question is whether investors are correct or just being overly complacent, he continued.
Officials from Japan and India have stayed in Washington to continue their discussions, boosting hopes for agreements with two of the world’s largest economies.
On Monday, the S&, P 500, and Nasdaq Composite all increased to record levels on Wall Street.
Read more about the oil prices as investors wait for Iran’s response to US strikes.
Most Asian stocks were also boosted by the optimism of trade, but the main indices in Europe fell.
According to Patrick O’Hare, an analyst for Briefing.com, Wall Street’s “positive disposition follows the weekend update that the Senate passed a procedural vote that will set up its version of the “One Big, Beautiful Bill” for a full Senate vote tonight.”
Trump’s signature tax-cutting bill, which costs $4.5 trillion, strengthens border security, and extends tax cuts from his first term.
By pressing for the package to be passed by July 4th, the Republican president has called out swinging lawmakers.
Concerns about the impact on the economy are present, though the non-partisan Congressional Budget Office projects that over the course of ten years, the measure would add nearly $3.3 trillion to US deficits.
Data showing a further decrease in Chinese factory activity in June following a China-US trade truce on Monday did not cause much major change.
Investors will be monitoring data this week, and a crucial US employment report will be looked over for signs of interest-rate growth.
According to FOREX.com analyst Fawad Razaqzada, this could be the “make-or-break moment” for the July rate cut expectations.
According to the CME’s FedWatch tool, only one in five investors can currently tell when the Federal Reserve will cut interest rates at its July meeting.
But they anticipate that it will be cut twice or three later this year.
Investors are also starting to increase their bets on rate cuts as a result of Trump’s suggestion that he could choose Jerome Powell as his successor in a few months.
At around 1530 GMT, important figures were revealed.
New York – Dow: UP 0.4 , percent at 44, 001.45 points
New York – S&, P 500: UP 0.2 , percent at 6, 184.09
New York – Nasdaq Composite: UP 0.1 , percent at 20, 296.92
London – FTSE 100: DOWN 0.4 percent at 8, 760.96 , (close)
Paris – CAC 40: DOWN 0.3 percent at 7, 665.91 (close)
Frankfurt – DAX: DOWN 0.5 percent at 23, 909.61 (close)
Tokyo – Nikkei 225: UP 0.8 percent at 40, 487.39 , (close)
Hong Kong – Hang Seng Index: DOWN 0.9 percent at 24, 072.28 (close)
Shanghai – Composite: UP 0.6 percent at 3, 444.43 (close)
Euro/dollar: UP at $1.1747 from $1.1718 on Friday
Pound/dollar: DOWN at $1.3702 from $1.3715
Dollar/yen: DOWN at 144.28 yen from 144.68 yen
Euro/pound: UP at 85.74 pence from 85.43 pence
West Texas Intermediate: DOWN 1.1 percent at $ 64.78 per barrel.
Brent North Sea Crude: DOWN 0.6%, $ 64.40 per barrel, versus $ 66.40 per barrel.
Source: Channels TV
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