US stocks ended higher on Monday, with the Dow Jones Industrial Average gaining 275.50 points to reach a new record high of 44,094.77. The S&P 500 and Nasdaq Composite also set records, with the S&P 500 closing at 6,204.95 and the Nasdaq finishing at 20,369.73.
Trade talks between the US and Canada are expected to continue ahead of July 9, when a 90-day tariff pause expires. The Canadian government announced it will scrap its digital-services tax against US tech companies, prompting President Trump to halt trade negotiations.
The Dow’s gain was driven by mechanical buying, or automated investing, where investments are made based on pre-determined rules. Fund managers say that low volatility in stocks may have contributed to the buying.
Oil prices fell 9% this year due to eased tensions in the Middle East and increased oil flows through the Strait of Hormuz waterway. Brent oil prices traded around $67 per barrel, while WTI finished at $65.11.
A weak US dollar is seen as a concern for the economy, with the dollar’s weakness losing 10.7% so far this year. This may raise prices on imports and support manufacturing exports.
Gold prices rose 25% this year due to expectations of lower interest rates and a strong dollar. However, prices ended June with a loss of 0.2%, marking the biggest monthly decline since December.
The Federal Reserve’s interest-rate-cut expectations are likely to keep gold prices supported at $3,127.
Source: https://www.marketwatch.com/livecoverage/stock-market-today-dow-set-for-250-point-rise-s-p-500-and-nasdaq-could-hit-new-records