Record Highs: U.S. Stock Market Soars Amid Trade Optimism and Tech Strength

U.S. stock markets reached record highs driven by optimism surrounding trade negotiations and tech shares gains after Canada dropped its digital services tax. Investors eye economic data, potential interest rate cuts, and ongoing trade talks with the U.S. Meanwhile, major banks reported strength under the Fed's stress test, suggesting potential increased capital returns.

U.S. stock futures tracking the S&P 500 and Nasdaq soared to record highs on Monday. The surge was fueled by optimism over trade negotiations between the United States and its key partners.

Technology sector heavyweights saw a premarket increase after Canada removed its digital services tax aimed at U.S. tech firms, which was scheduled to start but was scrapped to facilitate trade discussions. Shares of Amazon, Meta Platforms, Alphabet, and Apple registered gains between 0.6% and 1.7%.

The S&P 500 and Nasdaq Composite hit all-time highs last week on hopes for U.S. interest rate cuts and renewed AI optimism. Amidst the backdrop of President Trump's trade policies causing market fluctuations, investors are now focusing on upcoming economic data and fiscal policies to assess the longevity of this bullish trend.

(With inputs from agencies.)