U.S. stocks closed higher, overcoming early declines even as officials appeared to make little headway in a standoff over tariffs. The broad S&P 500 added 24.25 points, 0.4%, to touch 5,395.94, while the Dow Jones Industrial Average gained 35.41 points, 0.1%, to close at 42,305.48. The tech-laden Nasdaq Composite jumped 0.7%, adding 128.85 point to end the session at 19,242.61.
Markets are watching the twists and turns of tariff policy − last week a federal court halted President Donald Trump’s most aggressive tariffs only to see them reinstated by an appeals court hours later − but are also looking for clues on how the trade war has affected the economy.
U.S.-China trade tensions have risen again after Trump last week accused the country of violating terms of a tariff pause agreed upon in May. On Monday, the Chinese Ministry of Commerce issued a statement disputing Trump’s claim.
Also last week, Trump said he was doubling tariffs on steel imports to 50% from 25%, effective June 4. A European Union spokesperson said the EU is “prepared to impose countermeasures, including in response to the latest U.S. tariff increase.”
The May jobs report due at the end of the week could provide insight into how businesses are handling the threat of much higher prices. Economists, on average, expect the U.S. economy added 130,000 nonfarm payroll jobs while the unemployment rate held steady at 4.2%, according to Bloomberg. In April, the U.S. economy added 177,000 jobs.
“Firms likely paused the hiring of trade and transportation workers but given elevated uncertainty about the steady state on tariffs, we don’t think they would have already started shedding workers,” said Antonio Gabriel, global economist at Bank of America Securities.
While waiting for more clarity on tariffs and the economy, investors also will continue to track Trump’s “One Big, Beautiful Bill” tax legislation that’s now in the Senate. The House passed the bill by a single vote.
On Monday, JPMorgan Chase CEO Jamie Dimon said on FOX Business Network’s “Mornings with Maria” that the rising U.S. national debt is a “big deal” that could create a “tough time” for the bond market. The benchmark U.S. 10-year note was up nearly 5 basis points to 4.462% at the close. Bond yields rise as prices fall.
More: Treasury bond yields are surging as the Trump tax bill progresses. Here’s why it matters.
Oil prices rose over the weekend amid escalating strikes between Russia and Ukraine. In the latest attack, Ukraine allegedly destroyed more than 40 planes well within Russian territory, according to The Associated Press. Prices were also boosted by the weekend decision by OPEC+ to boost output less than some analysts had forecast. Crude oil closed 3.5% higher.
