U.S. stocks close higher despite trade headwinds
NEW YORK, June 2 (Xinhua) -- U.S. stocks ended higher on Monday, as investors appeared to look past renewed global trade tensions.
The Dow Jones Industrial Average rose 35.41 points, or 0.08 percent, to 42,305.48. The S&P 500 added 24.25 points, or 0.41 percent, to 5,935.94. The Nasdaq Composite Index increased 128.85 points, or 0.67 percent, to 19,242.61.
Ten of the 11 primary S&P 500 sectors ended in green, with energy and technology leading the gainers by adding 1.15 percent and 0.89 percent, respectively. Meanwhile, industrials bucked the trend by losing 0.24 percent.
The United States has seriously undermined the consensus reached during the China-U.S. economic and trade talks in Geneva by successively introducing multiple discriminatory restrictive measures against China, China's Ministry of Commerce said Monday.
These measures included issuing guidance on AI chip export controls, halting sales of chip design software to China, and announcing the revocation of visas for Chinese students, according to a spokesperson for the ministry.
Meanwhile, friction with the European Union intensified after U.S. President Donald Trump announced plans to double tariffs on imported steel to 50 percent. In response, an EU spokesperson warned the move could derail ongoing negotiations, stating "this decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic."
"Markets see the latest round of tariff threats and ramped up rhetoric against China, the EU, and steel as nudges to move negotiations towards the finish line," said Jamie Cox, managing partner at Harris Financial Group.
U.S. stocks entered June cautiously after a strong May rally, during which the S&P 500 jumped more than 6 percent, marking its best month since November 2023 and the strongest May performance since 1990.
Despite fears that new tariffs could trigger inflation, Federal Reserve Governor Christopher Waller said Monday that any price increases are likely to be short-lived. He added that this scenario could give the Fed room to make "positive" rate cuts in 2025. "I support looking through any tariff effects on near term-inflation when setting the policy rate," he said.
As earnings season winds down, a few notable companies are still set to report this week, including CrowdStrike, Broadcom, DocuSign, and Lululemon.
Looking ahead, markets are closely watching key economic data set for release this week, especially Friday's May nonfarm payrolls report, which could shed light on how ongoing trade disputes and shifting interest rate expectations are affecting the broader U.S. economy.
On Monday, new data from the Institute for Supply Management showed continued contraction in the U.S. manufacturing sector, with imports falling to their lowest level since 2009.
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