U.S. Stocks Rise Amid Trade Tensions
U.S. stocks finished higher on Monday, demonstrating resilience despite escalating trade tensions. The Nasdaq Composite rose by 0.7%, the S&P 500 gained 0.4%,and the Dow Jones Industrial Average saw a slight increase of less than 0.1%.
China responded to President Trump’s accusations, denying any breach of the earlier trade truce. Beijing blamed the U.S. for tightening export controls on AI chips and restricting visas for Chinese students.Treasury Secretary Scott Bessent, though, expressed optimism about upcoming talks between Trump and Chinese President Xi Jinping.
European officials also criticized the U.S. for doubling tariffs on steel and aluminum to 50%, starting Wednesday. They warned of possible retaliatory measures. A European Union trade delegation is in Washington to address these concerns.
Energy Sector Boosts Market Sentiment
Despite geopolitical tensions,the energy sector rallied,lifting investor spirits.The S&P 500 Energy index climbed 1%, thanks to a 2.8% surge in U.S. crude-oil prices. This was triggered by a drone strike by Ukraine on Russian military targets. OPEC+ also announced a supply increase for July, boosting oil and copper futures.
treasury yields increased,with the 10-year yield reaching 4.461% and the 30-year yield hitting a significant technical level. The dollar weakened, while the euro, pound, and yen strengthened.
The S&P 500 and Nasdaq are now coming off their strongest month since 2023, showing renewed investor interest despite global uncertainties.
