New York Stock Exchange Closes Day Higher

At the close, the Dow Jones index gained nearly 300 points and increased by 0.63 percent to reach 44,094.77 points.

The S&P 500 index rose 0.52 percent to 6,204.95 points and the Nasdaq index gained 0.48 percent to 20,369.73 points. Both indexes broke Friday's closing records.

Equity markets were positive, driven by optimism that the US would reach an agreement on tariffs and conclude trade agreements with its trading partners.

Canada has backed down on the digital services tax after US President Donald Trump announced last week that trade talks with Canada had ended.

Canada's government has decided to repeal a digital services tax on technology companies in a bid to make progress in talks with the United States on a new economic and security partnership.

US Treasury Secretary Scott Bessent also said there would be a rush for a deal as pressure increases heading into the final week when the 90-day tariff reprieve expires.

"There are countries that are negotiating in good faith, but countries should be aware that if we cannot reach an agreement because of their stubbornness, we could go back to the April 2 levels. I hope that doesn't have to happen," Bessent said, noting that tariffs for some countries could rise to the levels announced on April 2.

Kevin Hassett, director of the White House National Economic Council, also noted that digital services taxes will be lifted worldwide and that he expects this to be part of ongoing trade negotiations.

But countries that impose such duties in the future will "incur the wrath" of U.S. Trade Representative Jameson Greer for their "unfair trade practices," Hassett said.

Trump also threatened to impose tariffs on Japan in a post on his Truth Social account, on the grounds that it did not buy rice from them despite the rice shortage it was experiencing.

"They are not buying our rice, yet they are experiencing a serious rice shortage. In other words, we will just send them a letter and we will be happy to have them as a trading partner for many years to come," Trump said, noting that he has great respect for Japan.

On the other hand, White House Spokesperson Karoline Leavitt reported that Trump said in a note to US Federal Reserve (Fed) Chairman Jerome Powell that "it is costing the country a fortune and that he needs to lower interest rates."

Sharing the same note on his social media account, Trump said, "Jerome 'too late' Powell and the entire board should be ashamed of themselves for allowing this to happen to the United States."

Trump, who claimed that the Fed board was just "sitting and watching," emphasized that they should borrow at a cost of 1 percent or less.

This week, investors will be focused on the oral presentations of the governors of major central banks at the ECB Central Banking Forum, to be held in Sintra, Portugal by the European Central Bank (ECB). Fed Chair Powell will also speak at the event tomorrow.

Investors will also be following developments regarding the "tax reduction" bill being discussed in the US Congress and employment data to be announced in the country.