Insights 
VT 
US equities began the new quarter on a confident note, with the S&P 500 rising 0.52% on Monday to close at 6,204.05 after reaching an intraday peak of 6,219.65. The Nasdaq added 0.47%, while the Dow Jones Industrial Average advanced by 0.63%, buoyed once again by robust gains in major technology names.
Microsoft and Meta Platforms were at the forefront of the rally, both setting fresh record highs and helping lift the Nasdaq to a strong quarterly close. Optimism was further fuelled by news that Canada would shelve its planned digital services tax, an announcement aimed at reducing tensions with the United States ahead of upcoming trade discussions.
Trade Developments And Fed Hopes Underpin Confidence
Investor sentiment was lifted by Canada’s decision to abandon its digital tax plan, which had been a sticking point in US-Canada relations. This move has smoothed diplomatic ties just ahead of President Trump’s 90-day tariff pause, with negotiations continuing between the US and several key trading partners, including Mexico, India, and Vietnam.
Meanwhile, US Treasury yields edged lower as economic indicators showed signs of softening. This decline, combined with cautious rhetoric from Federal Reserve officials, reinforced expectations of potential rate cuts later this year. Lower yields have provided additional support to equity valuations, particularly in interest-sensitive industries such as technology and real estate.
Technical Analysis
On the 15-minute chart, the S&P 500 remains well-supported above its 30-period moving average. The index rebounded firmly after touching 6,136.65 on Friday, and momentum indicators such as the MACD histogram have returned to positive territory. The MACD signal lines are also beginning to slope upward, suggesting the potential for further gains, albeit with moderate strength.
With the S&P sitting near all-time highs, resistance remains at 6,220. A sustained break above this level could trigger fresh upside. However, profit-taking and headline risks may keep the index oscillating between 6,180 and 6,220 in the near term.
The bullish equity trend may continue if trade negotiations progress and U.S. macro data remains soft but stable. However, stronger-than-expected inflation or labour figures could temper rate cut expectations and weigh on stock momentum.
