Updates with premarket prices

By Sruthi Shankar and Nikhil Sharma

June 30 (Reuters) - U.S. stocks were set to open higher on Monday, as optimism over the United States striking trade deals with its key partners fed into the bullish momentum that had sent Wall Street indexes to record highs last week.

Shares of technology heavyweights rose premarket after Canada 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.

Shares of Amazon AMZN.O, Apple AAPL.O, Alphabet GOOGL.O and Meta Platforms META.O edged up in the range of 0.2% and 1.8%.

The benchmark S&P 500 .SPX and the tech-heavy Nasdaq Composite .IXIC rose to all-time highs on Friday, as bets of deeper U.S. interest rate cuts and renewed optimism around AI helped markets rebound from the months-long tumult sparked by U.S. President Donald Trump's tariff policies and geopolitical tensions.

The blue-chip Dow remains 2.7% below its record closing high reached on December 4.

Focus now shifts to 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".

"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 nation's debt pile. 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.

By 8:35 a.m. ET (1235 GMT), S&P 500 e-minis EScv1 were up 22.5 points, or 0.36%. Nasdaq 100 E-minis NQcv1 rose 124.5 points, or 0.55%, and Dow e-minis YMcv1 climbed 223 points, or 0.51%.

Despite record highs for U.S. stocks, the S&P 500, Nasdaq and Dow are set for their weakest first-half performances since 2022.

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.N rose 1%, while rivals JPMorgan Chase JPM.N, Citigroup C.N and Wells Fargo WFC.N added between 0.3% and 1.7%.

Juniper Networks JNPR.N rose 8.5% after the U.S. Justice Department settled its lawsuit challenging server maker Hewlett Packard Enterprise's HPE.N all-cash acquisition of the networking gear maker for $14 billion.

Hewlett Packard Enterprise shares soared 14.1%.

(Reporting by Sruthi Shankar and Nikhil Sharma in Bengaluru; Editing by Devika Syamnath)

((sruthi.shankar@thomsonreuters.com;))