S&P 500, Nasdaq jump to fresh records, capping stunning second-quarter comeback

US stocks climbed to fresh records on Monday amid signs of progress in trade talks, ending one of the most volatile first halves of a year in recent memory.

The Dow Jones Industrial Average (^DJI) rose over 0.6%. The tech-heavy Nasdaq Composite (^IXIC) and the S&P 500 (^GSPC) moved up about 0.5%, with both indices notching new record highs as the benchmark index closed above 6,200 for the first time. Big Tech giants Nvidia (NVDA) and Meta (META) hit their own fresh records.

The S&P 500 and the Nasdaq Composite last week had clinched new record highs for the first time since February — the start of the year’s tariff-fueled stock swings.

Stocks started a holiday-shortened week on an upbeat note as hopes rose 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.

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 out only two accords — not full-blown agreements — with China and the UK, with the British tariff deal going into effect on Monday.

Market watchers were 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 estimated it would add $3.3 trillion to the deficit over a decade, as it stands. The Senate was voting on dozens of amendments in a marathon session on Monday.

Meanwhile, the 10-year Treasury yield (^TNX) fell about 5 basis points to 4.23%.

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