New York: U.S. stock markets wrapped up the second quarter on a strong note Monday, with all three major indexes posting solid gains driven by renewed trade optimism and robust corporate momentum. The S&P 500 surged 0.6% to notch another record close, while the Nasdaq Composite advanced 0.6%, also hitting a fresh all-time high. The Dow Jones Industrial Average jumped 308 points, or 0.7%, as investors bet on continued economic resilience.
A major catalyst behind Monday’s rally was Canada’s decision to cancel its proposed digital services tax, which was set to begin July 1 and target U.S. tech giants like Google, Meta, and Amazon. The move came after former U.S. President Donald Trump declared a halt to trade negotiations with Canada, triggering fears of another tariff war. Canada's reversal eased tensions, boosting market sentiment and lifting tech stocks.
The S&P 500 crossed the symbolic 6,200 mark, closing out its strongest quarter since December 2023 with a 24% rebound from recent lows. Treasuries also rallied, heading toward their best half-year performance in five years amid speculation that the Federal Reserve could resume rate cuts. Meanwhile, the U.S. dollar recorded its steepest monthly slide since 2017, further fueling risk appetite.
In a pivotal development, Apple Inc. lost its bid to dismiss a major antitrust lawsuit filed by the U.S. Department of Justice and several state attorneys general. The case alleges Apple’s control over app distribution and iPhone software has stifled innovation and harmed competition posing a potential threat to its mobile hardware dominance.
Simultaneously, Apple is said to be exploring a partnership with AI firms OpenAI and Anthropic to power future iterations of Siri, marking a possible shift from its in-house AI models.
Argentina’s economy surprised analysts by growing 1.9% in April, far exceeding expectations, after President Javier Milei relaxed some currency controls under a new $20 billion IMF deal. The data signals a tentative rebound following last year’s recession.
In Europe, ECB President Christine Lagarde announced a strategic tweak to the bank’s inflation outlook methods, emphasizing risk-based projections over rigid forecasts. She cited past policy missteps during the post-COVID reopening as a key lesson.
In Chile, state miner Codelco is pushing forward with a lithium joint venture with SQM, aiming to finalize regulatory approvals before a new government takes office. The deal, though politically sensitive, will give Codelco control over SQM’s prized Atacama operations.
Former President Donald Trump once again turned up the heat on global trade, threatening fresh tariffs on Japan over rice import disputes. “They won’t take our RICE, and yet they have a massive rice shortage,” Trump posted, raising alarms among market watchers.
Starbucks Corp. revamped its hiring strategy under CEO Brian Niccol, requiring an extra interview round to ensure higher service quality. The coffee chain is scaling up staffing across its U.S. outlets by September in a bid to accelerate service and sales.
Meanwhile, Citigroup’s top government banker, Julie Monaco, announced her retirement. She will remain involved in the bank’s Ukraine strategy, a key growth market where Citi remains the only U.S. bank operating post-war.
Wall Street’s strong end to June reflects confidence in U.S. economic resilience, dovish Fed hopes, and easing trade tensions. However, persistent regulatory pressures on Big Tech, volatile global politics, and looming elections in key economies suggest that volatility may resurface in the second half of 2025.