US Stocks Rise on US-Canada Trade Deal Progress

The market move reflects relief that the U.S. and Canada have resumed negotiations and are nearing an agreement after the U.S. suspended planned tariffs to keep talks going. Canadian officials say progress has been significant, raising the odds that both sides can avoid a new round of duties that would have raised costs for manufacturers, automakers, energy producers and retailers on both sides of the border.

Investors are treating the talks as a de-escalation in a trade fight that had threatened to bleed into broader risk assets. The S&P 500’s technical backdrop remains constructive, with the index ETF holding above its 50-day moving average at 751.56 and its 200-day average at 704.98, while RSI readings of 57.6 suggest the rally is cooling from overbought levels rather than breaking down.

The dollar is also under pressure, with Adalytica’s US Dollar Trade Signals showing extreme fear sentiment and a weak reading that points to softer demand for the currency as trade tensions ease. That combination can support multinational earnings expectations, but it also leaves investors watching for any surprise in the final terms of the deal.

The next catalyst is the formal announcement of the trade accord or any sign the talks stall again, which would quickly revive tariff risk and shift attention back to inflation, margins and supply-chain costs.