Markets Rise on US–Canada Trade Developments; Disney Gains on Analyst Upgrade
US stock indexes posted early gains on Monday, building on recent momentum as investors responded positively to renewed trade talks between the United States and Canada, Investor’s Business Daily reports.
Meanwhile, shares of Walt Disney saw a boost following an upbeat analyst rating, while other notable movers included Tesla, Robinhood, and Palantir.
As of midmorning, the Dow Jones Industrial Average rose approximately 150 points, or 0.3%, while the S&P 500 and Nasdaq Composite added 0.2% each, extending their recent record-setting performance. The Russell 2000, which tracks smaller companies, was also up 0.3% and trading just above a key technical threshold — its 200-day moving average.
Markets were lifted by news that Canada had rescinded a planned digital services tax on US tech firms, prompting a resumption of trade negotiations. President Donald Trump had paused talks last week in protest of the tax but agreed to reopen discussions in a Sunday call with Canadian Prime Minister Mark Carney. The two sides aim to reach a deal by July 21, according to Canadian officials.
On Monday, communication services and financials led sector gains in the S&P 500, while energy and utilities underperformed. Growth stocks were also on the rise, with the Innovator IBD 50 ETF up 1.4%, bringing its year-to-date gain to nearly 14%.
Disney (DIS) advanced more than 1% after Jefferies upgraded the stock from hold to buy and raised its price target from $100 to $144. Analyst Ed Alter highlighted the company’s growing strength in digital offerings, including Disney+, where web traffic has risen 40% year over year. He also noted expected improvements in streaming profitability and strength in Disney’s Experiences division, which includes parks and cruise lines.
The stock tested a buy point of $123.74, according to MarketSurge, and moved further above an early entry at $120.50.
Tesla (TSLA) declined nearly 1% in early trade, extending a losing streak ahead of its second-quarter delivery data, expected Wednesday. Analysts project 390,000 vehicle deliveries, down 12% from last year but up from Q1 totals.
Robinhood (HOOD) climbed more than 5% to a new high, while Broadcom (AVGO) rose nearly 2%, hitting an all-time high.
Palantir Technologies (PLTR) rebounded more than 4% after announcing a new AI partnership with Accenture to provide services to US federal agencies. The stock had dropped over 9% on Friday.
Looking ahead, attention turns to Thursday’s US jobs report, which is expected to show a slight cooling in the labor market. Economists forecast a 115,000-job gain for June and a rise in the unemployment rate to 4.3%, which would mark a four-year high. The market will be closed on July 4 for the Independence Day holiday.
Treasury yields edged slightly lower in morning trading, with the 10-year yield slipping to 4.26% from 4.29% on Friday. Oil prices also softened, with West Texas Intermediate crude trading near $65.30 per barrel.
While trade developments have helped support the market’s recovery, some strategists caution that tariff uncertainty remains a key risk. Analysts at Deutsche Bank noted that past patterns show market rallies sometimes prompt tariff escalations, which can be followed by policy reversals that reignite gains.
As the July deadline for tariff implementation approaches, markets remain sensitive to political signals. President Trump said over the weekend that notices of new tariffs will be sent soon unless trade deals are finalized.
Overseas, European markets traded slightly lower, while Asian markets showed mixed results. Hong Kong’s Hang Seng Index fell 0.9%, while Shanghai’s Composite Index rose 0.6%, buoyed by a modest improvement in factory activity after China and the US agreed to delay further tariff increases in May.
