The S&P 500 closed slightly higher on Monday, supported by gains in Amazon and Alphabet shares. Investors remain focused on ongoing U.S.-China trade negotiations aimed at resolving a dispute that has unsettled markets throughout the year.
Top officials from both countries have resumed talks to revive a preliminary trade agreement reached last month, which briefly eased tensions between the two largest economies.
Jake Dollarhide, CEO of Longbow Asset Management, said the market views any dialogue with Beijing as progress, even if concrete results are not immediate. “The market is willing to trust the administration’s word until proven otherwise,” he added.
Amazon and Alphabet each rose more than 1%, helping keep the S&P 500 in positive territory. Amazon recently announced plans to invest at least $20 billion in Pennsylvania to expand its data center infrastructure, boosting its AI capabilities.
Apple shares fell 1.2% after the company’s annual software developer conference failed to excite investors with only minor updates.
The S&P 500 gained 0.09%, ending at 6,005.88 points. The Nasdaq rose 0.31% to 19,591.24, while the Dow Jones Industrial Average was nearly flat at 42,761.76.
Among S&P 500 sectors, six declined. Utilities led losses with a 0.66% drop, followed by financials down 0.55%.
Positive trade outlooks, strong earnings, and low inflation helped U.S. stocks rally in May, with the S&P 500 and Nasdaq posting their best monthly gains since November 2023. Still, the S&P 500 remains about 2% below its February record high, and the Nasdaq is roughly 3% below its December peak.
Warner Bros. Discovery shares fell about 3% after announcing plans to separate its studios and streaming units from its struggling cable networks. The stock had initially jumped as much as 13% following the news.
McDonald’s shares dipped 0.8% after Morgan Stanley downgraded the stock to “equal-weight” from “overweight.” Robinhood Markets fell nearly 2% after S&P Dow Jones Indices kept the S&P 500 lineup unchanged, ending speculation the brokerage would join the index.
Investors will watch key data releases this week, including May consumer prices on Wednesday and jobless claims on Thursday. The Federal Reserve is widely expected to hold interest rates steady next week, but inflation signals remain a focus amid concerns that tariffs could push prices higher.
Advancing stocks outnumbered decliners on the S&P 500 by a 1.1-to-1 ratio. The index recorded 16 new highs and 4 new lows, while the Nasdaq saw 97 new highs and 46 new lows. Trading volume was light, with 17.1 billion shares changing hands, slightly below the 20-day average of 17.8 billion.
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