U.S. stock futures advanced to record territory Monday, lifted by a rally in tech shares and renewed optimism around trade negotiations. Futures tracking the S&P 500 gained 0.39%, while Nasdaq 100 futures climbed 0.6% in premarket trading, reflecting investor confidence ahead of key economic updates.
The gains followed Canada’s decision to scrap its planned digital services tax hours before implementation, easing tensions with the U.S. and aiding the momentum in heavyweight tech stocks. Shares of Amazon, Meta Platforms, Alphabet, and Apple rose between 0.6% and 1.7% premarket, extending Friday’s rally that pushed both the S&P 500 and Nasdaq to all-time closing highs.
Market optimism has been further fueled by expectations of deeper interest rate cuts by the Federal Reserve, supported by recent soft economic data and speculation over leadership changes at the Fed.
Trade and Fiscal Policies in Focus
Investors remain attentive to July 9, the deadline for trade negotiations, with President Trump signaling flexibility to extend or shorten the tariff deadline. This follows a U.S.-China trade deal that eased rare-earth tensions and a U.S.-U.K. agreement cutting car tariffs and eliminating aircraft parts duties.
Key fiscal developments include:
- The U.S. Senate advancing Trump’s sweeping tax cut and spending bill.
- Voting on potential amendments scheduled for Monday at 9 a.m. EDT.
- Potential implications for consumer spending and corporate earnings.
Upcoming economic data releases:
- June non-farm payrolls.
- ISM manufacturing and services PMI.
- Speeches from Fed Chair Jerome Powell and central bank officials.
Analysts note that while stocks are at record highs, the S&P 500, Nasdaq, and Dow are tracking their weakest first-half performance since 2022, underscoring the fragility beneath the rally.
Banks and Corporate Movers Lead Market Action
Bank shares gained after the Federal Reserve’s annual “stress test” confirmed 22 of the largest U.S. banks can withstand severe downturn scenarios while maintaining lending capacity.
Notable movers:
- JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo rose between 0.4% and 1.9%.
- Banks are expected to boost dividends and share buybacks following the favorable results.
- Juniper Networks surged 8.4% after the Justice Department settled its case against Hewlett Packard Enterprise’s $14 billion acquisition of the company, clearing a path for the deal to close.
As the market digests the trade optimism, Fed expectations, and earnings landscape, investors will closely watch whether the current momentum can persist in the second half of 2025.
