Equities experienced an uptick on Monday as market participants concluded an impressive month characterized by additional record highs. The S&P 500 experienced an increase of 0.52%, achieving yet another record close at 6,204.95. The Nasdaq Composite increased by 0.47%, achieving new all-time highs and concluding at 20,369.73. The Dow Jones Industrial Average increased by 275.50 points, representing a rise of 0.63%, concluding at 44,094.77. Monday’s increase is attributed to Canada retracting its digital service tax to promote trade discussions with the U.S. Following President Donald Trump’s statement on Friday regarding the U.S. “terminating ALL discussions on Trade with Canada.” Initial payments on the tax were scheduled to commence on Monday and would have been applicable to firms like Google, Meta, and Amazon.

Investors are closely monitoring the impending announcement regarding trade agreements between the U.S. and its trading partners, given that Trump’s 90-day tariff reprieve is scheduled to conclude next week. On Monday, Treasury Secretary Scott Bessent remarked that there are “countries that are negotiating in good faith.” However, he noted that “if we can’t get across the line because they are being recalcitrant,” tariffs could still “spring back” to the levels announced on April 2. Negotiations in that area may reach conclusion following the passage of Trump’s “one, big, beautiful” bill, as stated by National Economic Council Director Kevin Hassett during an appearance on CNBC’s “Squawk on the Street” Monday. The package achieved a slim victory in a crucial procedural vote in the Senate on Saturday night. If approved by the Senate, it encounters a precarious trajectory in the House, where certain GOP legislators have expressed reservations regarding amendments in the most recent iteration of the legislation.

As the tariff deadline approaches and the tax bill is on the horizon, there is potential for increased volatility in the latter part of 2025. However, equity fundamentals and a strengthening market breadth, among other considerations, suggest that the recent momentum may persist, as noted by Terry Sandven of U.S. Bank Wealth Management. “The wall of worry is crumbling as stocks reach all-time highs,” stated the chief equity strategist, whose year-end target of 6,325 suggests nearly 2% upside in the S&P 500 from Monday’s close. “Inflation remains stable, interest rates are contained within a range, and earnings are on an upward trajectory. That presents a favorable environment for equities to persist in their upward trajectory as we enter the latter half of the year.

Monday signified the conclusion of June, a month during which the principal indices have experienced a notable rebound, returning to unprecedented heights. The S&P 500 experienced an increase of nearly 5% over the month, whereas the tech-heavy Nasdaq saw a rise exceeding 6%. The Dow experienced an increase exceeding 4% in June. Before the S&P 500 and Nasdaq reached record highs on Friday, global trade and tariff tensions significantly impacted the market, bringing the broad market index perilously close to a bear market in early April. All three major averages concluded the second quarter with substantial gains, as the S&P 500 increased by over 10%, the Nasdaq surged by nearly 18%, and the Dow experienced an increase of almost 5%.