On June 30, 2025, U.S. stock markets soared to unprecedented levels, buoyed by renewed optimism in international trade relations and significant corporate developments. The S&P 500 and Nasdaq Composite both closed at record highs, while the Dow Jones Industrial Average posted substantial gains, reflecting investor confidence in the economic outlook.
A pivotal factor contributing to the market rally was Canada’s decision to rescind its planned 3% digital services tax targeting major U.S. technology firms, including Meta, Amazon, and Google. The tax, which was set to take effect on June 30 and apply retroactively to 2022, had drawn sharp criticism from U.S. officials. President Donald Trump labeled the levy a “direct and blatant attack,” leading to the suspension of trade negotiations between the two nations. In response, Canadian Prime Minister Mark Carney’s administration withdrew the tax to facilitate the resumption of trade talks, aiming to finalize a new economic agreement by July 21 .
The removal of the tax alleviated tensions between the U.S. and Canada, two countries with a bilateral trade relationship valued at approximately C$1.3 trillion annually. The Canadian government had initially justified the tax as a temporary measure pending a multilateral solution but faced mounting pressure from both domestic business groups and U.S. officials .
In the corporate sector, Home Depot announced a $5.5 billion acquisition of GMS Inc., a building-products distributor based in Tucker, Georgia. The deal, executed through Home Depot’s subsidiary SRS Distribution, includes a cash tender offer of $110 per share, totaling approximately $4.3 billion in equity value. This acquisition follows Home Depot’s $18 billion purchase of SRS Distribution last year and is part of the company’s strategic focus on expanding its building and material supply business to better serve professional builders .
The acquisition will combine GMS with SRS to create a network of over 1,200 locations and 8,000 delivery trucks, enhancing service capabilities for professional customers. The deal is expected to be finalized by the end of fiscal 2025. Following the announcement, GMS shares rose nearly 12%, while Home Depot shares saw a slight decline .
Additionally, Oracle Corporation revealed a significant development in its cloud services division. The company announced a cloud computing contract valued at $30 billion annually, which is expected to more than double its current cloud revenue. CEO Safra Catz stated that the company had gotten off to a “strong start” this fiscal year, having signed multiple large cloud agreements already .
Investors are now turning their attention to upcoming economic data, including the July jobs report and ongoing tariff negotiations, which are anticipated to further influence market trajectories. The recent market rally underscores the sensitivity of financial markets to geopolitical developments and corporate activities, highlighting the interconnectedness of global economies.
