Dow, S&P 500, Nasdaq futures rise as momentum builds for Trump trade deals, tax bill

US stock futures climbed on Monday amid signs of progress in trade talks, setting up the major gauges for more all-time highs to end one of the most volatile first halves of a year in recent memory.

Dow Jones Industrial Average futures (YM=F) rose roughly 0.5%. Contracts on the S&P 500 (ES=F) moved up about 0.4%, while those on the tech-heavy Nasdaq 100 (NQ=F) jumped 0.4%.

Stocks are poised to start a holiday-shortened week with fresh records in sight, as hopes rise that the US and its top trading partners are closing in on deals over the sweeping tariffs introduced by President Trump.

Canada scrapped a digital services tax targeting US tech companies late on Sunday — just hours before it was set to start collecting payments — in a bid to revive stalled trade negotiations. On Friday, Trump called an abrupt halt to the talks over the tax, describing them as a “blatant attack” on the US.

Despite a temporary turn lower, all three major indexes closed higher on Friday. The S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC) clinched new record highs for the first time since February — the start of the year’s tariff-fueled stock swings.

The easing in odds of a global trade war comes as a July 9 deadline looms for the resumption of sweeping US “reciprocal” tariffs, which Trump on Sunday said he didn’t think he’d need to extend. So far, his administration has hammered only two accords — not full-blown agreements — with China and the UK, as the British tariff deal went into effect on Monday.

Meanwhile, market watchers are closely following Senate negotiations over Trump’s proposed $4.5 trillion tax cut bill, as Republican leaders race to persuade party holdouts to back the legislation. The Congressional Budget Office estimates it would add $3.3 trillion to the deficit over a decade, as it stands. The Senate is set to vote on dozens of amendments in a marathon session on Monday.

Looking ahead, the June jobs report on Thursday will be a highlight, as markets increasingly grow optimistic that the Federal Reserve could cut interest rates soon. But the week’s trading will be cut short, as markets will close at 1 p.m. on Thursday and remain shut on Friday for the Fourth of July holiday.