S&P 500 and Nasdaq futures reached all-time highs on Monday morning. This rise was driven by increasing optimism regarding ongoing talks with major US trading partners and strong performance in technology stocks.
In particular, Canada’s cancellation of its planned digital services tax on US technology giants just hours before it was due to go into effect was met with a positive reaction in the markets.
This decision was seen as a significant step in reducing tensions between the US and Canada and giving impetus to stalled trade negotiations.Tech Giants on the Rise
Following the decision, shares of major US technology companies such as Amazon (AMZN), Meta Platforms (META), Alphabet (GOOGL) and Apple (AAPL) gained between 0.6% and 1.7% in preliminary markets. While the overall sentiment in the markets is positive, this development is considered to have somewhat reduced the uncertainties in the technology sector.
Artificial Intelligence Excitement and Interest Rate Cut Expectations
The Nasdaq and S&P 500 indices, which also showed strong performance last week, reached new highs. Investors are now focused on possible interest rate cuts by the Federal Reserve (Fed) and the excitement brought to the sector by developments in the field of artificial intelligence.
This positive momentum signals a remarkable recovery after the fluctuations caused by the Trump era trade wars and geopolitical tensions in previous years.July 9 Deadline Approaching
As the July 9 deadline approaches for trade negotiations the US is conducting with some countries, new tariffs will be implemented if an agreement is not reached by this date.
However, hints that former President Donald Trump could extend or shorten this period are adding uncertainty to the process.Critical Economic Data and Fed Officials’ Speeches Expected
Investors are expecting key economic indicators this week, such as non-farm payrolls data and ISM manufacturing and services sector surveys.
In addition, statements from Fed Chairman Jerome Powell and other Fed officials may provide new clues about the direction of monetary policy.Bank Shares Also Rose
The annual “stress test” conducted by the US Federal Reserve revealed that 22 of the country’s largest banks are resilient to a serious economic downturn. This positive result has led to expectations that banks may take steps such as dividend increases or share buybacks. Shares of JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C), and Wells Fargo (WFC) rose between 0.4% and 1.9%.
HPE and Juniper Networks Deal Approved
Another significant development in the technology sector was the acquisition of Juniper Networks (JNPR) by Hewlett Packard Enterprise (HPE) for $14 billion. The US Department of Justice’s settlement of a lawsuit against the merger paved the way for the merger. As a result, Juniper shares gained 8.4% and HPE shares gained 5.6%
Latest Situation Before Market Opening (5:48 ET / 09:48 GMT)
- S&P 500 e-mini futures: +24.5 points (0.39%)
- Nasdaq 100 e-mini futures: +137 points (0.6%)
- Dow e-mini futures: +205 points (0.46%)
These increases show that optimism in US stock markets continues and investors are entering the second half with hope. However, some analysts warn that caution is needed, reminding that the first half of 2025 is the weakest period for the S&P 500, Nasdaq and Dow since 2022.
