Dow Jones up on strong trade news, Trump’s tax bill
2025/06/29 16:00Markets have continued their bullish momentum after positive signs on trade and Trump’s impending tax cuts.
U.S. stock indices are up on positive developments in trade and taxes. On Monday, June 30, Dow Jones was up 171 points or 0.39%, the S&P 500 was up 0.28%, while the tech-heavy Nasdaq was up 0.27%.
Dow Jones Industrial Average heatmap | Source: TipRanks
President Donald Trump signalled that trade talks with major trading partners are going forward at a good pace. On Sunday, June 29, Trump stated that he doesn’t expect he will need to extend the July 9 deadline on trade negotiations.
The deadline, which Trump implemented earlier, is when the 25% tariffs on most of the U.S. trading partners kick back in. However, he did signal that the White House could do anything it wanted, either extending the deadline or even shortening it.
In other trade news, the White House announced that the U.S. will restart its trade talks with Canada. Earlier, Canada agreed to remove its digital services tax, which would apply to U.S. tech firms. Once the tax is removed, the U.S. will get back to the negotiations immediately, the White House economic adviser Kevin Hassett stated.
The U.S. trade war has put major pressure on U.S. stocks, as investors are concerned about the impact it might have on inflation and growth. Coupled with tax cuts, the markets are now on track to hit new all-time highs.
Trump’s ‘big, beautiful’ draws criticism from Musk
A part of what’s driving the bullish momentum is Trump’s “big, beautiful” budget, which proposes $4.5 trillion in tax cuts. Republican party leaders are now trying to convince party holdouts in the Senate with a range of last-minute changes.
Still, some of these changes have drawn intense criticism, including from the tech-billionaire Elon Musk. Notably, the new tax bill will phase out tax credits for clean energy, while giving support to the fossil fuel industry.
Musk, who controls the EV manufacturer Tesla, called the bill “utterly insane and destructive,” and suggested it would put the U.S. in a worse position strategically.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Deutsche Bank: The "fifth wave of tech stock rally" in US stocks since late July has peaked, prepare for a "V-shaped reversal"
Deutsche Bank has downgraded its rating on US technology stocks from overweight to neutral, noting that the fifth round of tech stock rally since July 29 is approaching the upper boundary of the long-term trend channel. The current upside potential is only about 4 percentage points, while historical trends indicate downside risks could reach 16 percentage points. Funds are expected to rotate into other sectors, and the European market, with its lower tech exposure, is likely to benefit relatively. However, Deutsche Bank emphasized that the long-term outperformance trend of technology stocks remains unchanged.
How expensive is AI computing power rental in the US? "Spot price" is twice that of long-term contracts, and four times the return threshold for cloud service providers.
The short-term spot leasing price for AI computing power reaches as high as $40 to $50 billion per gigawatt per year, while the price for long-term contracts is only $20 billion per year, and the breakeven threshold for supercomputing cloud operators is around $12 billion per year. However, according to Goldman Sachs, the fundamental reason why hyperscale cloud providers like Google rent computing power at such significant premiums is that their in-house capacity cannot keep up; once their own capacity catches up, the spot premium will disappear.
‘More bullish on Bitcoin’ – Strategy leads 91% of corporate BTC buying
Crypto prices
More
