Wall Street extended its gains on Monday (Tuesday AEST), closing out a volatile second quarter with fresh record highs.
The Dow Jones climbed 275.5 points or 0.6%, ending at 44,094.8, the S&P 500 rose 31.9 points or 0.5% to finish at a record 6,205, while the Nasdaq Composite also extended all-time highs, adding 96.3 points or 0.5% to close at 20,369.7.
Investor sentiment was buoyed by Canada's decision to scrap its digital services tax, aimed at easing trade tensions with the U.S.
The move follows President Donald Trump’s declaration last week that all trade talks with Canada were suspended.
The tax would have affected major tech firms like Google, Meta, and Amazon.
Markets are now focused on the expiry of Trump’s 90-day tariff pause next week. Treasury Secretary Scott Bessent said some nations are “negotiating in good faith”, but warned tariffs could return if talks stall.
Meanwhile, Trump’s sweeping trade legislation advanced in the Senate but faces hurdles in the House.
June capped a powerful rebound, with the S&P 500 gaining 5%, the Nasdaq jumping 6.6%, and the Dow rising 4.3%.
For the second quarter overall, the S&P surged 10.6%, the Nasdaq rallied 17.8%, and the Dow lifted 5%.
On the bond markets, 10-year and 2-year yields were down 1% and 0.5% to 4.232% and 3.727%, respectively.
