U.S. stock futures point higher with a move by Canada to rescind a digital services tax bolstering sentiment. Meanwhile, the Republican-controlled U.S. Senate starts debate over a sweeping tax cuts and spending bill, but some GOP holdouts remain even as a Fourth of July deadline to pass the package looms large. Elsewhere, Chinese manufacturing activity contracts in May, although at a slower rate than anticipated.

U.S. stock futures traded higher on Monday, as investors welcomed a decision by Canada to scrap a digital services tax aimed at American technology groups and hoped that the White House may be able to secure a range of trade deals in the coming weeks.

By 03:30 ET (07:30 GMT), the Dow futures contract had risen by 250 points, or 0.6%, S&P 500 futures had gained 23 points, or 0.4%, and Nasdaq 100 futures had risen by 109 points, or 0.5%.

The main averages all ended in the green on Friday, with the benchmark S&P 500 and tech-heavy Nasdaq Composite both notching all-time closing peaks. The Nasdaq, in particular, confirmed its entry into bull market territory, commonly defined as a 20% rise off a recent low.

A personal consumption expenditures report showed that consumer spending unexpectedly declined in May, while the inflation rate stubbornly above the Federal Reserve’s 2% target. The figures bolstered hopes for potential interest rate reductions from the central bank.

Financial markets have now priced in a roughly 74% probability that the Fed will slash rates as soon as its September, although there is still a smaller chance that the drawdown comes at its next gathering in July.