US stocks showed positive movement with the S&P 500 and Nasdaq closing at their highest levels after finishing their best quarter in more than a year.
The rise was driven by hopes of a trade deal and the possibility of an interest rate cut in the US.
The second quarter of 2025 saw the S&P 500 jump 10.57%, the Nasdaq expand 17.75%, the Dow Jones rose 4.98% and the Russell 2000 index rose 8.28%.
All three major indexes recorded their worst first-half performance since 2022 due to uncertainty over US trade policy.
For the current change in the main indices, the Dow Jones climbed 0.63% to 275.50 points, the S&P 500 strengthened 0.52% to 31.88 points, while the technology-focused Nasdaq increased 0.48% to 96.28 points.
Market confidence is increasing following the China-UK trade agreement negotiations, thus giving hope that a global trade war can be avoided before the tariff deadline on July 9.
Furthermore, Canada withdrew a digital services tax on US technology firms to ease tensions with the US.
However, the US Treasury Secretary warned that new tariffs are likely to be implemented in the near future.
In addition, Senate Republicans are also trying to pass a spending and tax cut bill before Independence Day on July 4, despite divisions within the party.
The market is also waiting for important economic data this week as well as statements from several central bank officials including Federal Reserve (Fed) Chairman Jerome Powell after speculation that Trump will replace Powell with a better candidate.
The move comes after Trump pressured the Fed to cut interest rates this year.
US stock market trading volume recorded $17.12 billion compared to an average of $18.23 billion over the full 20 trading days.
