Dow Set to Open Up Amid Hope Over U.S.-Canada Trade Deal
Stocks looked set to extend their record-breaking rally on Monday after Canada rescinded its digital sales tax, bolstering investors’ hopes that the U.S. will be able to broker a trade deal with its northern neighbor.
Futures tracking the Dow Jones Industrial Average were up 221 points, or 0.5%. S&P 500 futures climbed 0.4% and contracts tied to the tech-heavy Nasdaq 100 rose 0.5%, after both indexes ended last week at all-time closing highs.
Monday marks the final trading session of a wild second quarter in which investors have had to grapple with U.S. tariffs, President Donald Trump’s signature tax bill, and the 12-day war between Israel and Iran.
There was more news on the trade front over the weekend, as Canada withdrew its digital sales tax in a bid to salvage negotiations with Washington. Toronto had been set to haul in billions of dollars from U.S. tech companies, but on Sunday the government announced it would pause collections and introduce legislation in Parliament to scrap the levy, “in anticipation of a mutually beneficial comprehensive trade arrangement with the United States.”
Nonfarm payrolls data, the potential finalization of Trump’s tax bill, and a meeting of top monetary policymakers in Portugal are among the other factors that could move stock prices this week.
The yield on the benchmark 10-year Treasury note slipped 2 basis points to 4.26% on Monday. Gold climbed 0.6%, and a gauge measuring the strength of the dollar against a weighted basket of rival currencies slid 0.3%.