US markets opened on a strong note Monday, with the S&P 500 and Nasdaq hitting fresh record highs amid growing optimism over potential trade agreements between the United States and its key global partners. In the early hours of trade, the Dow Jones Industrial Average climbed 191.82 points (0.43%) to 44,008.00, while the S&P 500 gained 14.00 points (0.20%) to 6,185.65. The Nasdaq Composite advanced 41.13 points (0.16%) to 20,305.00, extending its rally on the back of positive investor sentiment.
Canadian Prime Minister Mark Carney announced on Sunday that trade negotiations with the United States have resumed. This development follows Canada’s decision to scrap its proposed Digital Services Tax, which was set to take effect on Monday. The 3% levy would have targeted major American tech companies, including Amazon, Google, Meta, Uber, and Airbnb based on revenue generated from Canadian users. The retroactive tax was estimated to cost US firms around $2 billion. U.S. President Donald Trump had halted trade talks on Friday, denouncing the tax as a “direct and blatant attack” on the United States. In a bid to revive negotiations, Canada agreed to withdraw the tax.
Meanwhile, India-US trade negotiations enter another week ahead of the July 9 deadline, India has taken a firmer stance on protecting its agricultural sector. “The Indian team may extend its stay as key discussions are still ongoing, but we are not willing to open up everything the US is demanding in agriculture, millions of farmers’ livelihoods are at stake,” a government source said. India’s chief negotiator Rajesh Agarwal and other officials had initially travelled to the US for a two-day visit last week, but the talks have continued as both sides aim to finalise agreements before the current pause on reciprocal tariffs, 26% on Indian goods, expires. On Thursday, Trump stated that a “very big deal” with India is likely, marking the seventh time he has hinted at an impending agreement.