U.S. stock futures are pointing toward a higher open on Monday, following a mostly positive yet volatile finish to last week’s trading session.

Investor confidence is buoyed by optimism over potential trade agreements as the deadline for reciprocal U.S. tariffs approaches early next month.

Further encouraging sentiment is Canada’s recent decision to scrap its digital services tax on U.S. tech companies—a tax originally slated to take effect today.

This development comes after President Donald Trump announced last Friday that trade negotiations with Canada had ended due to the tax.

“Rescinding the digital services tax will allow the negotiations of a new economic and security relationship with the United States to make vital progress and reinforce our work to create jobs and build prosperity for all Canadians,” stated Canadian Finance Minister Francois-Philippe Champagne.

Friday’s trading session featured wide swings, with major indexes oscillating between gains and losses. Despite the turbulence, both the S&P 500 and Nasdaq closed at fresh record highs.

By day’s end, the Dow surged 432.43 points (1.0%) to 43,819.27, the Nasdaq rose 105.55 points (0.5%) to 20,273.46, and the S&P 500 advanced 32.05 points (0.5%) to 6,173.07.

Over the course of the week, the Nasdaq led with a 4.3% gain, while the Dow and S&P 500 rose 3.8% and 3.4%, respectively.

The rally kicked off after President Trump hinted at a new deal with China.

A White House official later clarified that the U.S. and China had reached “an additional understanding of a framework to implement the Geneva agreement.”

China’s Ministry of Commerce confirmed that both parties “have confirmed the details of the framework,” with the U.S. agreeing to lift “restrictive measures” and China set to “review and approve” export control items.

Commerce Secretary Howard Lutnick told Bloomberg that the administration expects to soon finalize agreements with ten major trading partners.

However, the markets pulled back in afternoon trading after Trump said he was ending trade talks with Canada over its digital services tax on U.S. technology firms.

“We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period,” Trump posted on Truth Social.

Economic data released by the Commerce Department showed consumer prices in May increased roughly as expected, though core inflation was slightly higher than forecasts.

“Today’s release revealed a little more core inflation than expected based on CPI and PPI data, but not enough to concern anyone,” commented FHN Financial Chief Economist Chris Low.

Additionally, a University of Michigan report showed consumer sentiment improved more than anticipated in June.

Retail stocks performed strongly, lifting the Dow Jones U.S. Retail Index by 1.8% to its best close in over four months.

Airline stocks also gained, with the NYSE Arca Airline Index up 1.5%.

Conversely, gold stocks fell sharply, dragging the NYSE Arca Gold Bugs Index down 4.0% alongside the precious metal.

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