Stock Market Update: Live Developments
Traders begin the second half of the year with stocks at record levels, and some analysts anticipate further growth in the coming months.
U.S. equity futures were slightly lower on Monday night following a new record for the S&P 500 at the end of the month and quarter.
Futures linked to the Dow Jones Industrial Average declined by 53 points, or 0.1%. S&P 500 futures and Nasdaq 100 futures each decreased by 0.1%.
In regular trading, the S&P 500 increased by 0.52%, reaching another record close. The Nasdaq Composite also achieved a new all-time high, rising 0.47%. The Dow Jones Industrial Average rose by 275.50 points, or 0.63%.
Monday's market movements followed Canada's decision to reverse its digital services tax to support trade negotiations with the U.S. This action came after President Donald Trump stated on Friday that he would end all trade discussions with Canada.
Market participants are monitoring negotiations between the U.S. and its trading partners, as the 90-day pause on certain tariffs is scheduled to end next week.
Stocks have recovered after significant declines in April, which were influenced by tariff policies that brought the S&P 500 near bear market levels. Since then, the major indices have rebounded, with the S&P 500 closing the second quarter with a 10.6% gain and the Nasdaq increasing by nearly 18% during the same period.
As the second half of the year begins with stocks at record highs, some analysts believe the market may continue to rise in the coming months.
"We think this is going to be a broader recovery," Mike Wilson, chief U.S. equity strategist and chief investment officer at Morgan Stanley, said Monday on CNBC's "Closing Bell."
"We've gone through a significant rolling recession, and with the Federal Reserve potentially reducing rates later this year or next year, we could see a rolling recovery due to pent-up demand, particularly in interest rate sensitive sectors," he added. These sectors include manufacturing and housing.
Traders are anticipating the release of the S&P Global Purchasing Managers' Index at 9:45 a.m. ET, which will provide information on manufacturing activity. The ISM manufacturing report is scheduled for 10 a.m., and the Job Openings and Labor Turnover Survey (JOLTS) will also be released Tuesday morning.