US stocks rise as investors prepare for Trump's tariff deadline
Over the last five days, the Dow Jones has risen 3% to 44,094.77, the Nasdaq 2.83% to 20,369.73, and the S&P 500 2.37% to 6,204.95.
Futures on Tuesday morning were tracking very marginally lower, although Wall Street showed buoyed investor sentiment on Monday.
Stocks were notably boosted after Canada said it would rescind a planned tax on US technology firms and resumed trade talks with the United States. On Friday, US President Donald Trump had said he was suspending those talks to retaliate for the tax, calling it 'a direct and blatant attack on our country'.
US stocks have bounced back on hopes that Trump will reach deals with other countries and avert trade wars that could stifle the economy and send inflation higher.
Many of the administration's announced tariffs have been postponed and are due to come into effect again on 9 July.
The EU, for instance, is working to avoid a proposed 50% tariff. The bloc may accept a 10% baseline duty on many of its exports but is seeking carve outs for goods such as alcohol and automobiles.
On Wall Street, Oracle's 4% rise was one of the strongest forces lifting the S&P 500 on Monday. CEO Safra Catz said the tech giant was 'off to a strong start' in its fiscal year and added that the firm had signed multiple large cloud services agreements.
GMS' stock jumped 11.7% after the supplier of specialty building products said it agreed to be acquired by a Home Depot subsidiary in a deal that would pay $110.00 (€93.39) per share in cash.
Hewlett Packard Enterprise rallied 11.1% and Juniper Networks climbed 8.4% after the firms said they had reached an agreement with the US Department of Justice that could clear the way for their merger, subject to court approval.
Bank stocks were also solid after the Federal Reserve said on Friday that all major banks were financially strong enough to survive a downturn in the economy. JPMorgan Chase climbed 1%, and Citigroup gained 0.9%.
In the bond market, Treasury yields fell ahead of several major economic reports later in the week. The highlight will be Thursday's jobs report. It's often the most anticipated economic data of each month, and it will come a day earlier than usual because of Friday's Fourth of July holiday.
In Asian trading on Tuesday, Japan's Nikkei 225 fell 1.05% to 40,062.35, the Shanghai Composite index rose 0.32% to 3,455.37, and South Korea's Kospi rose 1.05% to 3,104.19.
Hong Kong's stock market was closed on Tuesday, while Australia's S&P/ASX 200 edged up 0.1% to 8,550.70.
In other dealings, Brent crude slipped 0.42% to $66.46 per barrel by around 7.45 CEST on Tuesday, while WTI dropped 0.4% to $64.85 per barrel.
The US dollar slipped 0.29% against the Japanese yen, while the euro remained roughly flat against the dollar.
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