Markets have officially turned the page on the Israel-Iran conflict, which ended in a ceasefire last Monday. Since then, equity bulls have pushed major indices to fresh all-time highs, with the Nasdaq and S&P 500 both reaching new peaks over the past week.
The Canadian TSX is also benefiting from the improved sentiment, touching a record high of 26,885 just today.
The Dow Jones, which had lagged behind in recent rallies, is now catching up—trading close to 1% away from its own all-time highs.
Adding to the optimism are recent trade deals from the Trump administration, including finalized agreements with Vietnam and the official enactment of the US-UK Trade Deal. US Treasury Deputy Faulkender noted that “plenty of deals” are nearing completion and may be announced in the coming weeks.
North American markets are experiencing lighter trading volumes this week, as many traders take time off during the shortened holiday schedule—following Canada Day on Monday and ahead of US Independence Day on Friday.
In the meantime, markets are preparing for the release of the July Non-Farm Payrolls (NFP) report tomorrow morning.
The data will offer critical insight into the current state of the US labor market, and could further shape expectations around monetary policy heading into the second half of the year.