Wall Street finished June with a fresh surge, wrapping up the month and quarter at new record highs. The S&P 500 gained 0.52% to close at 6,204.95, while the Nasdaq Composite rose 0.47% to 20,369.73. The Dow Jones added 275 points to finish at 44,094.77.
June delivered strong performance across the major indices. The S&P 500 rose nearly 5% for the month and over 10% for the second quarter. The Nasdaq posted a 6% monthly gain and climbed almost 18% over the quarter. The Dow rose 4% in June, contributing to a robust rebound from the April lows.
Trade talks and tax bill drive sentiment
Markets responded positively to Canada’s decision to withdraw its planned digital services tax, which had been scheduled to begin this week and would have targeted major US tech companies. This followed a breakdown in US-Canada trade talks announced late last week.
Investors are now focused on the July 9 deadline for President Donald Trump’s 90-day tariff reprieve. US officials have indicated that negotiations with some countries are progressing, but have warned that tariffs could be reinstated if agreements are not reached. The outcome may also hinge on the passage of a large tax and spending bill, which cleared a Senate procedural vote over the weekend and now faces scrutiny in the House.
Despite political headwinds, improving earnings, moderate inflation, and stable interest rates are supporting broader market confidence heading into the second half of the year.
Commodities and currency
Oil prices slipped further after last week’s sharp losses, with West Texas Intermediate crude settling near US$65 a barrel. Traders are watching the upcoming OPEC+ meeting, where another monthly supply increase is expected. Gold rose 0.9% to US$3,303 an ounce, while iron ore edged lower to US$94.20 per tonne.
The US dollar weakened, hitting a near four-year low against the euro amid rising deficit concerns and ongoing trade uncertainty. The euro has now gained almost 14% against the dollar this year, contributing to the greenback’s worst first-half performance in decades.
Australian outlook
ASX futures suggest a mildly softer open, down 3 points to 8,534. Despite the slight pullback, the ASX 200 has rallied 25% from April lows and closed out the financial year with a 9.7% gain—its strongest annual performance since 2021.
