Dow Jones soars 275 points as trade progress and tech gains power market rally
U.S. stocks surged to fresh record highs Monday, as renewed optimism over trade negotiations and signs of economic resilience helped investors look beyond one of the most turbulent first halves of the decade.
The Dow Jones Industrial Average jumped 275 points, or 0.6%, while the S&P 500 and tech-heavy Nasdaq Composite both rose 0.5%, notching new all-time highs. The rally followed Canada’s surprise suspension of a controversial digital tax—lifting tensions just days before a key U.S. tariff deadline.
Markets Rally on Trade Momentum
The market’s momentum hinged on signs of de-escalation in trade tensions. Canada withdrew its digital services tax late Sunday, just hours before it was set to collect billions from U.S. tech giants. A phone call between President Donald Trump and Canadian Prime Minister Mark Carney signaled hopes for a broader deal by July 21.
Table 1: Major Index Performance – July 1, 2025
| Index | Close | Change | % Change | Record High? |
|---|---|---|---|---|
| Dow Jones (DJI) | 43,875.13 | +275 | +0.6% | Yes |
| S&P 500 (GSPC) | 6,213.29 | +30 | +0.5% | Yes |
| Nasdaq Composite (IXIC) | 17,512.44 | +85 | +0.5% | Yes |
Stocks in Focus: Big Tech, Big Moves
Investors rotated into select tech and growth names ahead of the shortened holiday week, with mixed results across the board:
Table 2: Notable Movers – July 1, 2025
| Stock | Move | Commentary |
|---|---|---|
| Apple (AAPL) | +2.0% | Regained 50-day average for first time since mid-May |
| Palantir (PLTR) | +4.3% | Rejoined IBD Leaderboard; stabilized after index balancing volatility |
| Robinhood (HOOD) | +13.0% | Hit fresh high, well above 66.91 buy point |
| Tesla (TSLA) | -1.8% | Extended 5-day losing streak; delivery numbers due Wednesday |
| Amazon (AMZN) | -1.8% | Remains in buy range post-cup-and-handle breakout |
Tesla’s upcoming vehicle delivery report could add fuel—or friction—to sentiment. Analysts forecast Q2 deliveries of 390,000 vehicles, a 12% annual decline but a notable rebound from Q1.
Looking Ahead: Jobs, Rates, and Reduced Hours
With the Fourth of July holiday looming, markets will shut early Thursday and remain closed Friday. But before the fireworks, investors will watch Thursday’s jobs report closely for signs the labor market is softening.
Economists expect:
- Unemployment rate to edge up to 4.3% (a four-year high)
- 115,000 new nonfarm jobs (with private sector adding 125,000)
Another cooling labor report may strengthen bets that the Federal Reserve could pivot to rate cuts—especially as the 10-year Treasury yield slid to 4.23% and oil eased to $65 per barrel.