Wall Street's Bullish Run Amid U.S. Trade Optimism

Wall Street experienced record highs as optimism surrounding U.S. trade negotiations with major partners boosted market morale. World stocks lingered near historic peaks, while European shares recovered from early losses.

Canada withdrew its digital services tax amid pressure from U.S. President Donald Trump, aiming to enhance trade talks. Efforts focus on finalizing an agreement by July 21, with an extended deadline from the original July 9. Most deals may be concluded by September 1.

Investor attention also rested on the progress of a significant U.S. tax-cutting and spending bill. The bill, estimated to increase national debt by $3.3 trillion over ten years, faces potential delay past Trump's July 4 deadline. Meanwhile, demand for U.S. tech stocks soared, contributing to gains in Nasdaq and S&P 500 futures.

European markets showed recovery, led by defence stocks after NATO's funding pledge. Eyes turned to a European Central Bank conference and upcoming crucial economic reports. In Asia, markets closed mixed, reflecting slight growth in China and varied performance in Hong Kong and Japan.

The labor market's resilience influences Federal Reserve's rate decisions, with speculation of potential rate cuts if jobs data underperform. Meanwhile, the U.S. dollar continues to weaken amid budget and trade concerns, impacting currency markets globally.

In commodities, risk sentiment revival weighed on gold prices, while oil markets remained pressured by potential increased OPEC+ output. Both Brent and U.S. crude prices faced declines.

(With inputs from agencies.)