U.S. Stocks Hit New Highs as Dollar Extends Record Losing Streak

Market Overview

Driven by optimism over trade agreements, U.S. equities extended their rally, with both the S&P 500 and Nasdaq hitting new record highs. The Nasdaq rose more than 6% in June, marking its third consecutive monthly gain, while the S&P 500 surged over 10% in Q2—its strongest quarterly performance in 18 months.

U.S. Treasuries also gained traction, with the 10-year yield dropping to a two-month low and falling nearly 20 basis points in June. The U.S. Dollar Index weakened further, hitting a three-year low and marking its sixth straight monthly decline—the longest streak since 2017. Year-to-date, the dollar has fallen over 10%, its steepest first-half drop since the index was established in 1973. In contrast, Treasuries posted their best semiannual performance in five years.

Commodities delivered mixed results: oil paused after a three-day rally but still ended June up more than 6%, recording a second consecutive monthly gain. Gold briefly fell to a one-month low but later rebounded to $3,317 per ounce.

Hot Topics Ahead

● Trade Deal Optimism Keeps S&P on Record Path

The Nasdaq jumped over 6% in June, notching a three-month winning streak, while the S&P 500 advanced over 10% in Q2. Apple reportedly considered integrating third-party AI tools, pushing its shares up 2%. All major U.S. banks passed the Feds stress test, with Goldman Sachs rising over 2% to lead the Dow. Nvidia extended its record-setting streak to four days and surged nearly 46% in Q2.

Tesla, on the other hand, fell for a fifth straight session, ending nearly 2% lower and down more than 20% year-to-date. Oracle gained 4% to hit an all-time high.

U.S. Treasuries saw their best H1 performance in five years, while the dollar index dropped more than 10%—marking its steepest first-half decline since 1973.

● Canada Backtracks—Drops Digital Services Tax

Previously, Trump had halted trade talks with Canada, citing its proposed digital services tax as an unfair attack on U.S. tech giants, echoing the EU's approach. He warned that unless Canada abandoned the tax within seven days, the U.S. would impose retaliatory tariffs on Canadian goods. Now, Canada has withdrawn the plan, clearing a major hurdle in bilateral trade negotiations.

Key Events to Watch

• 21:45 GMT+8 – U.S. S&P Global Manufacturing PMI Final (June)

• 22:00 GMT+8 – U.S. ISM Manufacturing PMI (June), JOLTs Job Openings (May, in 10,000s), Construction Spending MoM (May)