Stocks rose on Monday as traders closed out a stunning month with even more record highs.

The S&P 500 gained 0.52% and posted another record close, ending at 6,204.95. The Nasdaq Composite advanced 0.47% and also reached fresh all-time highs, closing at 20,369.73. The Dow Jones Industrial Average climbed 275.50 points, or 0.63%, settling at 44,094.77.

Monday's rise follows Canada rescinding its digital service tax in an effort to facilitate trade negotiations with the U.S. That's after President Donald Trump on Friday said the U.S. was "terminating ALL discussions on Trade with Canada." Initial payments on the tax were set to begin Monday and would have applied to companies such as Google, Meta and Amazon.

Investors are awaiting the announcement of any trade deals between the U.S. and its trading partners, as Trump's 90-day tariff reprieve is set to expire next week. On Monday, Treasury Secretary Scott Bessent said there are "countries that are negotiating in good faith." However, he added that "if we can't get across the line because they are being recalcitrant," tariffs could still "spring back" to the levels announced on April 2.

Deals on that front could be finalized once Trump's "one, big, beautiful" bill passes, National Economic Council Director Kevin Hassett said on CNBC's "Squawk on the Street" Monday. The package narrowly passed a key procedural vote in the Senate on Saturday night. If passed by the Senate, it faces an uncertain path in the House, where some GOP lawmakers have balked at revisions in the latest version of the bill.

While the looming tariff deadline and tax bill could help spur volatility in the remainder of 2025, equity fundamentals and improving market breadth, among other factors, could mean that the recent momentum will continue, according to Terry Sandven of U.S. Bank Wealth Management.

"The wall of worry is crumbling as stocks reach all-time highs," said the chief equity strategist, whose year-end target of 6,325 implies nearly 2% upside in the S&P 500 from Monday's close. "Inflation is stable, interest rates are range-bound and earnings are trending higher. That's a favorable backdrop for stocks to continue to forge higher as we begin the second half."

Monday marked the last day of June, a month in which the major averages have staged a sharp recovery back to record levels. The S&P 500 rose nearly 5% in the month, while the tech-heavy Nasdaq jumped more than 6%. The Dow added more than 4% in June.

Prior to the S&P 500 and Nasdaq hitting all-time highs Friday, global trade and tariff tensions rocked the market, putting the broad market index within striking distance of a bear market in early April.

All three major averages finished the second quarter with solid gains, with the S&P 500 adding more than 10%, the Nasdaq rising nearly 18% and the Dow popping almost 5%.