The U.S. stock market added to its record on Monday

The U.S. stock market added to its record on Monday as Wall Street closed out a second straight winning month.

The S&P 500 rose 0.5% in its first trading after completing a stunning recovery from its springtime sell-off of roughly 20%. The Dow Jones Industrial Average added 275 points, or 0.6%, and the Nasdaq composite gained 0.5%.

Stocks got a boost after Canada said it’s rescinding a planned tax on U.S. technology firms and resuming talks on trade with the United States. On Friday, U.S. President Donald Trump had said he was suspending talks with Canada because of his anger with the tax, which he called “a direct and blatant attack on our country.”

One of the main reasons U.S. stocks came back so quickly from their springtime swoon has been hope that Trump will reach deals with other countries to lower his stiff proposed tariffs. Otherwise, the fear is that trade wars could stifle the economy and send inflation higher.

Many of Trump’s announced tariffs are currently on pause, and they’re scheduled to kick back into effect in a little more than a week.

The U.S. stock market being back at a record high could actually raise the risk of renewed escalations on tariffs, according to strategists at Deutsche Bank led by Parag Thatte and Binky Chadha. They point to the pattern in 2018 and 2019 of rallies for the market prompting escalations for tariffs, which then drove the market lower and led to subsequent pullbacks on tariffs, which then sparked rallies again.