(For a Reuters live blog on U.S., UK and European stock

markets, click LIVE/ or type LIVE/ in a news window.)

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Indexes up: S&P 500 0.23%, Nasdaq 100 up 0.22%, Dow up

0.41%

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Juniper Networks ( JNPR ), HPE rise after DoJ settles antitrust

case

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Oracle's cloud deal to bring $30 bln in annual sales,

shares

jump

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Banking shares rise after Fed's stress test

(Updates with market open prices)

By Sruthi Shankar and Nikhil Sharma

June 30 (Reuters) - The S&P 500 and Nasdaq scaled new

heights on Monday, as optimism over the U.S. striking trade

deals with its key partners fueled the bullish momentum that has

kept indexes on track for gains this quarter.

The Nasdaq, S&P 500 and Dow Jones

have gained 17.5%, 10.2% and 4.6% so far in the quarter,

touching and then retreating from record levels since late last

year, partly because of headlines around President Donald

Trump's rapid policy changes.

The three indexes are still set for their weakest

first-half performances since 2022, as the resulting uncertainty

around policy has kept investors wary.

The blue-chip Dow remains 2.3% below its record closing

high reached on December 4.

On Monday, the benchmark S&P 500 and the

tech-heavy Nasdaq Composite extended their record run

from last week, on bets of deeper U.S. interest rate cuts and

renewed optimism around AI.

Investor focus is now on a July 9 deadline for countries to

reach deals with the United States or see tariffs spike higher,

but Trump has said he could extend the tariff deadline or "make

it shorter".

Canada on Sunday scrapped its digital services tax targeting

U.S. tech firms, just hours before it was due to take effect, in

a bid to advance stalled trade negotiations with the United

States.

"We've got this deadline coming, but then Trump has said

that the deadline can be moved. And then you've got markets

thinking that the Fed could potentially cut interest rates

sooner than later. So there are a lot of drivers here," said

Dennis Dick, at trader at Triple D Trading Inc.

"Investors are just confident here in this market right now,

because we've had some bad news come in, even some bad earnings

reports, and they buy the stocks right back. So bulls remain in

complete control."

Investors are also looking into economic data and fiscal

policy developments to see if the latest bull run in U.S. stocks

can continue.

U.S. Senate Republicans will try to pass Trump's sweeping

tax-cut and spending bill, despite divisions within the party

about its expected $3.3 trillion hit to the $36.2 trillion

national debt. Trump wants the bill passed before the July 4

Independence Day holiday.

Key economic data releases this week include monthly

non-farm payrolls and the Institute for Supply Management's

survey on manufacturing and services sectors for June.

Several U.S. central bank officials including Federal

Reserve Chair Jerome Powell are scheduled to speak later this

week.

A raft of soft economic data and expectations that Trump

will replace Powell with someone dovish have pushed up bets of

rate cuts from the Fed this year.

At 09:59 a.m. ET, the Dow Jones Industrial Average

rose 178.68 points, or 0.41%, to 43,998.06, the S&P 500

gained 14.13 points, or 0.23%, to 6,187.20 and the Nasdaq

Composite gained 44.64 points, or 0.22%, to 20,318.10.

Shares of big U.S. banks rose after most cleared the Federal

Reserve's annual "stress test", paving the way for billions in

stock buybacks and dividends.

Shares of Bank of America ( BAC ) edged up 0.8%, while

rivals JPMorgan Chase ( JPM ) and Wells Fargo ( WFC ) added 1.5%

and 1.9%.

Juniper Networks ( JNPR ) rose 8.3% after the U.S. Justice

Department settled its lawsuit challenging server maker Hewlett

Packard Enterprise's ( HPE ) all-cash acquisition of the

networking gear maker for $14 billion.

Hewlett Packard Enterprise ( HPE ) shares soared 9.6%.

Shares of Oracle rose 6.4% after the company said

the new cloud services agreement is expected to contribute more

than $30 billion to annual revenue starting in fiscal year 2028.

The S&P 500 posted 25 new 52-week highs and no new lows

while the Nasdaq Composite recorded 61 new highs and 37 new

lows.

Advancing issues outnumbered decliners by a 1.56-to-1 ratio

on the NYSE, while by a 1.7-to-1 ratio on the Nasdaq.