- Dow futures jump over 200 points on renewed U.S.-Canada trade optimism.
- Tech stocks rally after Canada cancels digital services tax targeting U.S. firms.
- Indian markets decline after a 4-day rally; Nifty slips below 25,550.
Global markets saw a surge in optimism as Wall Street futures climbed early Monday, fueled by Canada‘s unexpected withdrawal of its digital services tax just hours before implementation.
Meanwhile, India’s equity markets moved in the opposite direction. The Sensex fell by 452 points, while the Nifty ended the session at 25,517, dragged down by profit booking in banking and auto sectors.
Dow Futures Surge as Canada-U.S. Trade Tensions Ease; Indian Indices Retreat Amid Profit-Taking
Canada’s last-minute decision to scrap the digital tax targeting U.S. tech firms has eased tensions that had threatened a broader trade deal. The move, praised by U.S. officials, came just after President Trump had suspended negotiations, calling the tax discriminatory. Talks are now set to resume with a goal to finalize a deal by July 21, signaling improved bilateral cooperation.
U.S. equities have displayed remarkable resilience in June, with the S&P 500 up 4.4% and the Nasdaq climbing over 6%. Investors appear willing to look past geopolitical risk and soft economic data, encouraged by strong price action and robust earnings from tech giants. Market strategist Ken Mahoney noted that the bullish trend continues to defy bearish narratives.
Back home, Indian markets witnessed a pause in momentum as traders booked profits following a sharp recent rally. The Nifty Auto and Financial Services indices were among the weakest performers, declining 0.4% and 0.1%, respectively. Mid and small caps, however, outperformed slightly, supported by expectations of improved consumption-led earnings.
Attention now turns to the U.S. Senate, where President Trump’s tax and trade package faces a crucial series of votes. If passed, it could provide further stimulus to equities. However, intra-party disagreements in the House may still delay final approval, injecting some short-term uncertainty into global market sentiment.
Markets are ending the quarter on contrasting notes—Wall Street lifted by revived trade momentum, while Indian indices pause to digest recent gains. The coming days will test whether optimism can translate into sustainable growth.
“In the middle of difficulty lies opportunity.” — Albert Einstein
