US close: Stocks close higher despite heightened trade tensions

(Sharecast News) - Major indices closed higher on Monday after China said it would take strong measures to defend its interests as it claimed the US had "severely violated" their recently struck trade agreement. At the close, the Dow Jones Industrial Average was up 0.08% at 42,305.48, while the S&P 500 advanced 0.41% to 5,935.94 and the Nasdaq Composite saw out the session 0.67% firmer at 19,242.61.

The Dow closed 35.41 points higher on Monday, extending modest gains recorded in the previous session despite Donald Trump claiming that China had violated their preliminary trade agreement, reviving fears that the US may be on the brink of a protracted trade war.

Following Trump's claims, Beijing went so far as to blame Washington for failing to uphold its end of the deal struck by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng in Geneva, where the pair agreed to a 90-day suspension of the majority of tariffs.

However, National Economic Council director Kevin Hassett indicated over the weekend that Donald Trump and Chinese President Xi Jinping could possibly have a conversation regarding trade before the end of the week.

Trump's tariffs were mostly struck down by Court of International Trade last week, with the federal court ordering the White House to stop collecting duties. Although a day later, a federal appeals court granted Washington's request to temporarily pause that ruling.

Tensions between the US and the European Union were also in focus on Monday after Trump told American steelworkers that he would be doubling tariffs on steel imports to 50%, with effect from 4 June, with an EU spokesperson warning that the move "undermines" negotiations. "This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic," they said.

On the macro front, S&P Global's manufacturing PMI was downwardly revised to 52 in May, falling below a preliminary reading of 52.3. New orders to US manufacturers increased and stocks of inputs increased a survey record.

Elsewhere, the Institute for Supply Management's manufacturing PMI fell a third straight month in May, dropping to 48.5 from 48.7 in April, missing market expectations for a reading of 49.5.

Finally, construction spending dropped by 0.4% month-on-month in April to a seasonally adjusted annual rate of $2.15trn, according to the Census Bureau, following March's revised 0.8% decrease and missing market forecasts of a 0.3% rise. Private sector spending fell 0.7%, while public spending edged up 0.4%. On an annualised basis, construction spending shrank by 0.5% in April.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Boeing Co. (BA) $211.47 2.00% International Business Machines Corporation (CDI) (IBM) $263.90 1.87% Nike Inc. (NKE) $61.57 1.62% Cisco Systems Inc. (CSCO) $63.85 1.28% Walmart Inc. (WMT) $99.77 1.06% Intel Corp. (INTC) $19.74 0.97% Unitedhealth Group Inc. (UNH) $304.72 0.93% Chevron Corp. (CVX) $137.84 0.83% American Express Co. (AXP) $295.33 0.44% Apple Inc. (AAPL) $201.70 0.42%

Dow Jones - Fallers

Dow Chemical Co. (DOW) $27.20 -1.95% Salesforce.Com Inc. (CRM) $261.62 -1.41% 3M Co. (MMM) $146.40 -1.31% Procter & Gamble Co. (PG) $167.78 -1.24% Caterpillar Inc. (CAT) $344.67 -0.97% Merck & Co. Inc. (MRK) $76.25 -0.77% Walgreens Boots Alliance, Inc. (WBA) $11.20 -0.44% McDonald's Corp. (MCD) $312.68 -0.37% Goldman Sachs Group Inc. (GS) $598.72 -0.29% Coca-Cola Co. (KO) $72.00 -0.14%

S&P 500 - Risers

Nucor Corp. (NUE) $120.40 10.10% Nektar Therapeutics (NKTR) $0.80 9.92% Newmont Corporation (NEM) $55.58 5.42% Freeport-McMoRan Inc (FCX) $40.15 4.34% Micron Technology Inc. (MU) $98.18 3.94% Advance Auto Parts (AAP) $49.73 3.76% Arista Networks Inc. (ANET) $89.78 3.62% Meta Platforms Inc. (META) $670.90 3.62% Advanced Micro Devices Inc. (AMD) $114.63 3.52% Microchip Technology Inc. (MCHP) $60.00 3.38%

S&P 500 - Fallers

Bath & Body Works, Inc. (BBWI) $26.73 -4.94% Macy's Inc. (M) $11.32 -4.79% Interpublic Group of Companies Inc. (IPG) $22.87 -4.55% Omnicom Group Inc. (OMC) $70.49 -4.02% Ford Motor Co. (F) $9.98 -3.85% Leggett & Platt Inc. (LEG) $8.73 -3.64% LyondellBasell Industries (LYB) $54.44 -3.63% Baxter International Inc. (BAX) $29.55 -3.11% Wynn Resorts Ltd. (WYNN) $87.80 -3.03% Under Armour Inc. Class A (UAA) $6.51 -2.98%

Nasdaq 100 - Risers

Micron Technology Inc. (MU) $98.18 3.94% Meta Platforms Inc. (META) $670.90 3.62% Microchip Technology Inc. (MCHP) $60.00 3.38% Broadcom Inc. (AVGO) $248.71 2.74% Lam Research Corp. (LRCX) $82.48 2.09% Cadence Design Systems Inc. (CDNS) $292.53 1.90% eBay Inc. (EBAY) $74.53 1.86% Nvidia Corp. (NVDA) $137.38 1.67% Ross Stores Inc. (ROST) $142.42 1.66% Costco Wholesale Corp. (COST) $1,056.85 1.60%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $3.54 -13.66% Wynn Resorts Ltd. (WYNN) $87.80 -3.03% Adobe Systems Inc. (ADBE) $403.40 -2.82% DENTSPLY Sirona Inc. (XRAY) $15.62 -2.25% PACCAR Inc. (PCAR) $91.77 -2.22% Sirius XM Holdings Inc (SIRI) $21.26 -1.94% Biomarin Pharmaceutical Inc. (BMRN) $57.05 -1.76% Hasbro Inc (HAS) $65.55 -1.74% J.B. Hunt Transport Services Inc. (JBHT) $136.65 -1.58% Alphabet Inc. Class A (GOOGL) $169.03 -1.58%