Insights 
VT 
Key Points:
- S&P 500 rose 0.52% to close the month; current level at 6,204.05 after peaking at 6,219.65.
- Canada’s reversal on digital tax and soft yields buoy equities; trade deal updates in focus.
U.S. equities kicked off the new quarter on a firm note, with the S&P 500 climbing 0.52% on Monday to close at 6,204.05, reaching an intraday high of 6,219.65. The Nasdaq followed suit with a 0.47% gain, while the Dow added 0.63%, all supported by continued momentum in Big Tech.
Microsoft and Meta led the advance, both posting new record highs and contributing to the Nasdaq’s strong quarterly finish. Trader enthusiasm was further boosted by Canada’s decision to roll back its proposed digital services tax, a move aimed at easing tensions with the U.S. ahead of renewed tariff discussions.
Trade Progress and Fed Outlook Drive Sentiment
The market welcomed the news that Canada would not proceed with its digital services tax, a contentious issue that had threatened to escalate into a wider trade dispute. This gesture has smoothed the path ahead of President Trump’s 90-day tariff reprieve deadline, with negotiations ongoing between the U.S. and key partners including India, Mexico, and Vietnam.
At the same time, U.S. Treasury yields declined, reinforcing hopes of interest rate cuts later in the year. The 10-year yield has drifted lower amid signs of economic cooling and dovish tones from Federal Reserve officials. This has provided additional support for equity valuations, particularly in interest-sensitive sectors such as tech and real estate.
Technical Analysis
On the 15-minute chart, the SP500 price remains well-supported by the 30-period moving average. After a steep dip to 6,136.65 last Friday, the index rebounded strongly. The MACD histogram has turned positive again, and the signal lines are tilting upward, suggesting a possible continuation of the bullish trend—though momentum is modest.
Picture: SP500 consolidates below resistance as bulls regroup, as seen on the VT Markets app
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.
