U.S. stocks climbed in early trading on Monday, with the S&P 500 eyeing new highs as trade talk sentiment buoyed the major indices.
The S&P 500, which notched record highs last week amid easing geopolitical tensions and investor bets on rate cuts, opened 0.3% higher.
Meanwhile, confidence across markets saw the Dow Jones Industrial Average up 200 points and the Nasdaq up 0.4%. All major stock market gauges are eyeing fresh all-time highs, with Wall Street poised to end June and the second quarter of 2025 on a strong note.
Tariffs and trade deals
This upbeat mood around stocks comes amid growing optimism that the United States is edging toward significant trade deals with its major partners.
As well as China, the United Kingdom, and the European Union, there’s also Canada. The U.S. has some form of trade agreements with China and the UK—but the July 9 deadline for comprehensive deals or a resumption of reciprocal tariffs is fast approaching.
Speaking to CNBC on Monday, Nicholas Burns, Harvard’s Belfer Center professor and former U.S. Ambassador to China, said the U.S. and China may not be close to a comprehensive deal yet. However, Burns noted the U.S. can leverage the current situation to extract more from China.
He told ‘Squawk Box’ in an interview:
“We need more leverage on our side of the table, and it’s there for the taking if we make China the centerpiece of this.”
Meanwhile, there’s also the potential for fresh talks between Canada and the U.S. after Canadian authorities scrapped a retroactive digital services tax aimed at American tech companies.
President Donald Trump had last week called for a halt to any engagement, referring to the digital services tax as a “blatant attack” on America. Tech stocks gained on the news.
