President Trump announced the termination of trade talks with Canada over a digital services tax, causing a brief dip in US stocks. However, investors largely ignored this news and instead closed at an all-time high for the first time since February.
Wall Street has become largely post-tariff, meaning the market is focused on forward-looking deals rather than immediate policy changes. Investors are taking a “wait-and-see” approach to tariff policy, with some experts saying they pay little attention to it anymore.
Instead, analysts point to several bullish signals that are driving investor confidence, such as expectations for a new trade deal and declining dollar values. These factors could provide a cushion for earnings beats among big tech companies.
However, economists caution that a slowdown in consumer spending is already underway due to tariff-driven inflation, which could worsen if the effects of increased tariffs aren’t fully understood until later. They argue that investors need to be cautious and not get caught up in “fear-of-missing-out” (FOMO) sentiment.
Ultimately, consensus is building around the idea that investors can stomach policy uncertainty but should focus on capturing rallies that follow after volatility dies down. The stock market record high may seem impressive, but gains in other global markets are even higher.
Source: https://www.axios.com/2025/06/30/canada-trump-tariffs-wall-street