Wall Street stocks rally further on trade and tax deal optimism
Canada said on Sunday it would restart trade negotiations with the United States after it rescinded a tax affecting US tech firms that had prompted US President Donald Trump to halt talks.
That boosted optimism that other governments would make deals with Trump to avoid his steep levies, as the July 9 cut-off for tariff reprieve looms.
"Investors seem confident trade deals will be struck, geopolitical tensions ease and a major economic slump is avoided," said Dan Coatsworth, investment analyst at AJ Bell.
"The big unknown is whether investors are correct or are simply being too complacent," he added.
Officials from Japan and India have extended their stays in Washington to continue talks, raising hopes for agreements with two of the world's biggest economies.
On Wall Street, both the S&P 500 and Nasdaq Composite pushed further into record territory on Monday. Trade optimism also helped boost most Asian stocks but Europe's main indices slid lower.
Briefing.com analyst Patrick O'Hare said Wall Street's "positive disposition follows the weekend update that the Senate passed a procedural vote that will set up its version of the 'One Big, Beautiful Bill' for a full Senate vote tonight".
Trump's signature tax-cutting bill extends tax cuts from his first term at a cost of $4.5 trillion and beefs up border security.
The Republican president has ramped up pressure to get the package to his desk by July 4 and called out wavering lawmakers from his party.
However, there are worries about the impact on the economy, with the non-partisan Congressional Budget Office estimating the measure would add nearly $3.3 trillion to US deficits over a decade.
There was little major reaction on Monday to data showing the contraction in Chinese factory activity eased further in June after a China-US trade truce.
However, investors will be keeping an eye on data this week and a key US jobs report on Thursday will be pored over for signs of the pace of interest-rate cuts.
"This could be the make-or-break moment for July rate cut expectations," said City Index and FOREX.com analyst Fawad Razaqzada.
Only one in five investors currently see the Federal Reserve cutting interest rates at its July meeting, according to the CME's FedWatch tool.
But they expect it to cut two or three times later this year.
Trump's indication he could choose a successor to Federal Reserve boss Jerome Powell within months is also leading investors to ramp up rate cut bets.
- Key figures at around 1530 GMT -
New York - Dow: UP 0.4 percent at 44,001.45 points
New York - S&P 500: UP 0.2 percent at 6,184.09
New York - Nasdaq Composite: UP 0.1 percent at 20,296.92
London - FTSE 100: DOWN 0.4 percent at 8,760.96 (close)
Paris - CAC 40: DOWN 0.3 percent at 7,665.91 (close)
Frankfurt - DAX: DOWN 0.5 percent at 23,909.61 (close)
Tokyo - Nikkei 225: UP 0.8 percent at 40,487.39 (close)
Hong Kong - Hang Seng Index: DOWN 0.9 percent at 24,072.28 (close)
Shanghai - Composite: UP 0.6 percent at 3,444.43 (close)
Euro/dollar: UP at $1.1747 from $1.1718 on Friday
Pound/dollar: DOWN at $1.3702 from $1.3715
Dollar/yen: DOWN at 144.28 yen from 144.68 yen
Euro/pound: UP at 85.74 pence from 85.43 pence
© Agence France-Presse
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Etihad
28 minutes ago
- Al Etihad
Trump announces US trade deal with Vietnam
2 July 2025 19:22 WASHINGTON / HANOI (Reuters) US President Donald Trump said on Wednesday that the United States has struck a trade deal with Vietnam, after months of negotiations, that imposes a 20% tariff rate on many imports from the Southeast Asian rate is lower than the initial 46% levy Trump announced in April on goods from Vietnam, largely as a result of its big trade surplus with Washington."It is my Great honour to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam after speaking with To Lam, the Highly Respected General Secretary of the Communist Party of Vietnam," Trump said on Truth said that goods from Vietnam would face a 20% tariff and that any trans-shipments from third countries would face a 40% would also provide the United States with more market access, with US exports to the country facing no tariffs, he said."It is my opinion that the SUV or, as it is sometimes referred to, Large Engine Vehicle, which does so well in the United States, will be a wonderful addition to the various product lines within Vietnam," Trump said. The White House and the Vietnamese trade ministry did not immediately respond to a request for comment.
Arabian Post
30 minutes ago
- Arabian Post
US–Vietnam Trade Accord Sets Stage for New Era
President Trump has confirmed that the United States and Vietnam have reached a trade agreement, with a detailed framework now in place while formal terms await finalisation. The accord suspends the 46 per cent reciprocal tariff on Vietnamese imports, originally imposed in April, and paves the way for expanded market access and tighter controls on rerouted Chinese goods. Negotiations were fast-tracked to meet the looming July 9 deadline, when the temporary pause on tariffs would otherwise lapse. As part of the layout, Vietnam has committed to reducing non-tariff trade barriers and allowing greater access for US livestock, aerospace equipment and energy exports—though precise sectors and volumes remain unspecified. At the centre of the deal stands a tiered tariff system based on foreign value‑content of exports. Products most heavily reliant on Chinese components may face duties of 20 per cent or more, while Vietnamese-made goods enjoy a lower baseline of 10 per cent. US officials have asserted that this structure addresses circumvention of Chinese duties while protecting legitimate Vietnamese manufacturing. ADVERTISEMENT Vietnamese Prime Minister Pham Minh Chinh, speaking at the World Economic Forum in Tianjin prior to the deal's announcement, stated that Hanoi expected to finalise negotiations before the July deadline and hoped for outcomes 'earlier than two weeks.' The country's trade surplus with the US, which reached US $13.8 billion in May—up 42 per cent year‑on‑year—remains a key negotiating point. Negotiators also addressed concerns about illegal trans‑shipment: goods routed through Vietnam after being manufactured in China to bypass Chinese tariffs. US trade adviser Peter Navarro has described this practice as a serious evasion tactic; Vietnamese officials have promised to strengthen border controls and customs scrutiny. Efforts are now moving beyond tariffs, with signs that Vietnamese companies will sign memorandums of understanding to purchase US agricultural products. One such agreement involves $800 million worth of corn, wheat, soybean meal and dried distillers grains from Iowa over three years—part of a wider $2 billion agricultural import initiative. The Office of the US Trade Representative has been steering bilateral talks under the authority granted in April, rolling back country‑specific tariffs to a baseline 10 per cent while seeking comprehensive trade frameworks. Vietnam is among eighteen nations engaged in similar negotiations, alongside the UK and China. However, as negotiations progress, only those with finalized agreements can expect to retain suspended tariffs beyond July 9. Vietnamese Trade Minister Do Duc Duy led a delegation to Washington in early June, focusing on high‑tech, aviation and energy sectors. This build‑up culminated in Vietnamese officials approving a broad framework, though detailed tariff schedules and purchase commitments remain pending. ADVERTISEMENT US Treasury officials, including Deputy Finance Minister Cao Anh Tuan, have registered concern over Vietnam's ballooning trade surplus and advocated for mechanisms to facilitate greater US exports of high‑technology products. The trade deal aims to address structural imbalances and discourage asymmetry. By halting the 46 per cent tariff, both governments aim to provide breathing room for companies navigating supply‑chain adjustments. Vietnamese exporters, particularly in textiles, electronics, and furniture, had faced rising costs and uncertainty. US importers, in turn, gained steadier input pricing while Vietnam's manufacturing sector gains clearer visibility on duty obligations. The bilateral agreement falls within the Trump‑era pivot towards isolating China as a growing trade adversary. After earlier deals with the UK and China, it signals an effort to construct a network of selective, strategic partnerships centred on reciprocal trade and industrial transparency. Despite uncertainty over the finer details, the accord demonstrates mutual interest in cooperative economic alignment. Vietnam has positioned itself as a major manufacturing hub in Southeast Asia, and its compliance against illicit trans‑shipment could bolster legitimacy in global supply chains. US firms—particularly in agriculture and high-tech—stand to benefit if Vietnamese commitments materialise. Further negotiations will refine tariff bands, enforcement mechanisms, and market access mandates. Both sides aim to formalise agreements ahead of the July 9 expiration. Meanwhile, US companies tied to Vietnamese supply chains—covering electronics, textiles and agri‑inputs—are anticipating disclosures that could guide sourcing decisions. Observers on both continents consider the deal as a modest but strategic realignment. For Washington, it reduces reliance on adversarial supply routes; for Hanoi, it secures tariff relief and access to high‑value US markets. As the technical teams proceed to swap drafts and conduct consultations, stakeholders await clarity on what the detailed deal will deliver in terms of quotas, standards and timelines.
Zawya
an hour ago
- Zawya
Mideast Stocks: Gulf bourses end mixed on US tariff uncertainty
Stock markets in the Gulf ended mixed on Wednesday as investors monitored global trade developments ahead of the United States' potential re-imposition of sweeping tariffs on July 9. President Donald Trump said on Tuesday he was not thinking of extending the July 9 deadline for countries to negotiate trade deals with the U.S., and continued to express doubt that an agreement could be reached with Japan. Saudi Arabia's benchmark index edged 0.1% higher, after two consecutive sessions of losses, helped by 1.7% rise in Saudi Arabian Mining Company. The cautious mood dominating the region contributed to mixed sector performances, said Joseph Dahrieh, managing principal at Tickmill. "Investors are awaiting further developments to gain more clarity, while low oil prices continue to pose a risk, despite a positive economic outlook," he said. Among gainers, oil giant Saudi Aramco rose 0.8%. Oil futures edged up as Iran suspended cooperation with the U.N. nuclear watchdog and markets weighed expectations of more supply from major producers next month, while the U.S. dollar softened further. Dubai's main share index dropped 0.4%, hit by a 1.3% fall in toll operator Salik Company. Separately, Dubai commuters may soon have a new way to beat traffic, as Joby Aviation successfully completed the first test flight of its fully-electric air taxi in the emirate this week - a significant step toward the city's goal of integrating airborne transport into its mobility network as early as next year. In Abu Dhabi, the index eased 0.1%, while the Qatari index closed flat. A report on Tuesday suggested that the U.S. labour market stayed resilient in May, sharpening the focus on U.S. nonfarm payrolls figures due on Thursday as investors try to gauge when the Federal Reserve is likely to cut interest rates next. Fed Chair Jerome Powell on Tuesday reiterated the U.S. central bank's plans to "wait and learn more" before lowering rates. Outside the Gulf, Egypt's blue-chip index added 0.4%, with Talaat Moustafa Holding rising 0.9%. SAUDI ARABIA rose 0.1% to 11,130 Abu Dhabi fell 0.1% to 9,920 Dubai dropped 0.4% to 5,669 QATAR finished flat at 10,699 EGYPT added 0.4% to 32,820 BAHRAIN was up 0.3% to 1,950 OMAN added 0.3% to 4,525 KUWAIT declined 0.6% to 9,083 (Reporting by Ateeq Shariff in Bengaluru. Editing by Mark Potter)
