US stock futures rise as markets eye strong June finish; tech rally, Canada's digital tax U-turn boost sentiment

US stock futures rise as markets eye strong June finish; digital tax U-turn, tech rally support sentiment

US stock futures edged higher on Monday, setting up Wall Street to potentially extend its record-setting rally and close out June on a high. The momentum comes on the back of easing trade tensions and continued strength in technology shares.

S&P 500 futures were up 0.4 percent, Nasdaq 100 futures rose 0.6 percent, and Dow Jones Industrial Average futures climbed 230 points, or 0.5 percent.

The gains follow Canada's decision to scrap its planned digital services tax, which had threatened to escalate trade tensions after US President Donald Trump abruptly announced a halt to talks with the country on Friday. The move appears to have helped reset negotiations, with Canadian Prime Minister Mark Carney stating that the decision supports renewed efforts toward a July 21 trade agreement.

Shares of big tech firms linked to the tax, including Meta Platforms and Alphabet, rose 2 percent and 1 percent respectively in early trade. Microsoft was also up 0.5 percent in the premarket.

Monday marks the final trading day of what has been a strong month for US equities. The S&P 500 has gained 4.4 percent in June, while the Nasdaq has jumped 6.1 percent and the Dow is up 3.7 percent. Both the S&P 500 and Nasdaq closed at record highs on Friday, capping a dramatic comeback from April's lows, when tariff shocks had briefly pushed the benchmark index down nearly 18 percent for the year.

"The bearish narratives — Middle East conflict, tariffs, soft economic data — keep getting invalidated by the price action," said Ken Mahoney, CEO of Mahoney Asset Management. "Every chance the market has had to break down has failed. Instead, it continues to do what bull markets do best: climb the wall of worry."

Investors are also tracking developments around President Trump's proposed spending bill, dubbed the "one, big, beautiful" package, which cleared a procedural hurdle in the Senate over the weekend. Its final passage remains uncertain, with some Republican lawmakers in the House voicing opposition to recent amendments.

On the monetary policy front, Atlanta Fed President Raphael Bostic said the central bank is unlikely to have enough clarity to support a rate cut at the July meeting. Speaking to CNBC, Bostic noted that inflation data and the impact of recent policy changes — including tariffs — will require more time to play out. “This could be a much more extended period than many expect,” he warned.

Markets will also be watching for end-of-month positioning, as well as potential volatility from quarter-end portfolio adjustments and rebalancing.

Asia trades mixed as markets digest economic data and trade developments

Across Asia, markets ended mixed on Monday as investors weighed new data points and updates on US-China trade tensions. China's factory activity contracted for a third straight month in June, adding to expectations that Beijing may roll out further stimulus measures.

Mainland China's CSI 300 index closed 0.37 percent higher at 3,936.08, while Hong Kong’s Hang Seng Index declined 0.87 percent to 24,072.28.

Japan's Nikkei 225 jumped 0.84 percent to 40,487.39, hitting an 11-month high during the session. The broader Topix rose 0.43 percent to 2,852.84. South Korea's Kospi closed 0.52 percent higher at 3,071.70, while the Kosdaq was flat at 781.50.

Australia's S&P/ASX 200 index rose 0.33 percent to 8,542.30, while India’s benchmark indices slipped in afternoon trade — the Nifty 50 down 0.53 percent and the BSE Sensex lower by 0.54 percent as of 1:45 p.m. IST.

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