Market Momentum: U.S. Trade Optimism Boosts Tech Stocks

U.S. stocks, led by technology giants, reached record highs as positive trade negotiations bolstered market optimism. Investor confidence increased following Canada's decision to scrap a digital tax targeting U.S. tech firms. Despite economic uncertainties, prospects of interest rate cuts contributed to the market's bullish trend.

On Monday, U.S. stock futures surged to record highs, buoyed by optimism surrounding trade talks with key partners. This positive momentum was notably evident in tech-heavy indexes, driven by Canada's withdrawal of a digital services tax on U.S. tech giants like Amazon and Apple, ahead of its implementation.

The S&P 500 and Nasdaq reached unprecedented heights, fueled by anticipated U.S. interest rate cuts and renewed enthusiasm for AI. Previous market instabilities caused by President Trump's tariff policies seemed to dissipate, although the Dow remained 2.7% below its peak from December.

While traders monitor upcoming economic data, including non-farm payrolls and manufacturing statistics, the prospect of further trade agreements continues to influence market trajectories. In parallel, U.S. bank stocks saw gains following a positive Federal Reserve stress test, signaling robust financial health amid hypothetical economic downturns.

(With inputs from agencies.)