U.S. Stocks Show Resilience Amid Trade Tensions
On Monday, U.S. stocks closed higher, demonstrating resilience against global trade disputes.The Nasdaq Composite rose by 0.7%, while the S&P 500 gained 0.4%. The Dow Jones saw a slight increase under 0.1%.
China contested U.S. President Trump’s claims of violating a trade agreement made earlier this year. Beijing shifted the blame to the U.S. for tightening AI chip export controls and limiting visas for Chinese students.
Despite these tensions, Treasury Secretary Scott Bessent remains hopeful for resumed talks between Trump and Chinese President Xi Jinping.Though, European officials criticized U.S.plans to double steel and aluminum tariffs to 50%,starting Wednesday. This coudl trigger European retaliatory duties. A trade delegation from the European Union is currently in Washington to address this matter.
The energy sector buoyed investor confidence. The S&P 500 Energy index climbed 1%, spurred by a 2.8% hike in U.S. crude prices due to a drone strike on Russian military targets. OPEC+ also plans to increase supply in July, boosting oil and copper futures.
Treasury yields increased, with the 10-year yield at 4.461% and the 30-year yield reaching a significant level. the dollar weakened,lifting the euro,pound,and yen.
The S&P 500 and Nasdaq saw their best month as 2023, indicating renewed investor interest despite global challenges.
