Dow Jones Soars as Trade Winds Shift and Trump’s Tax Cuts Fuel Rally

Wall Street’s bull run gets a double espresso shot—strong trade headlines meet tax-cut tailwinds. The Dow Jones Industrial Average surges as markets cheer the one-two punch of geopolitical de-escalation and fiscal stimulus. Never mind that the ‘strong trade news’ is probably just another tweetstorm—liquidity’s flowing, and that’s all that matters.

Tax breaks for corporations? Check. A temporary détente in trade wars? Check. Traders hitting the buy button like it’s a slot machine? Obviously. The market’s high on hopium again, and nobody’s asking when the hangover comes.

Funny how ‘economic optimism’ always seems to kick in during an election year. But hey—if the Fed’s printing and the algos are buying, who’s gonna argue with green candles?

President Donald TRUMP signalled that trade talks with major trading partners are going forward at a good pace. On Sunday, June 29, Trump stated that he doesn’t expect he will need to extend the July 9 deadline on trade negotiations.

The deadline, which Trump implemented earlier, is when the 25% tariffs on most of the U.S. trading partners kick back in. However, he did signal that the WHITE House could do anything it wanted, either extending the deadline or even shortening it.

In other trade news, the White House announced that the U.S. will restart its trade talks with Canada. Earlier, Canada agreed to remove its digital services tax, which WOULD apply to U.S. tech firms. Once the tax is removed, the U.S. will get back to the negotiations immediately, the White House economic adviser Kevin Hassett stated.

The U.S. trade war has put major pressure on U.S. stocks, as investors are concerned about the impact it might have on inflation and growth. Coupled with tax cuts, the markets are now on track to hit new all-time highs.

Trump’s ‘big, beautiful’ draws criticism from Musk

A part of what’s driving the bullish momentum is Trump’s “big, beautiful” budget, which proposes $4.5 trillion in tax cuts. Republican party leaders are now trying to convince party holdouts in the Senate with a range of last-minute changes.

Still, some of these changes have drawn intense criticism, including from the tech-billionaire Elon Musk. Notably, the new tax bill will phase out tax credits for clean energy, while giving support to the fossil fuel industry.

trump vs musk round 2. pic.twitter.com/7ffZtuQrik

Musk, who controls the EV manufacturer Tesla, called the bill “utterly insane and destructive,” and suggested it would put the U.S. in a worse position strategically.