Stocks finished higher Monday as investors digested the latest trade updates from the weekend’s G-20 summit. The Dow advanced 117 points while the S&P 500 is climbed 0.8% and closed at a record high. The Nasdaq Composite jumped 1.1%.
Monday’s gains were attributed to reports that Washington and Beijing have agreed to hold off on additional tariffs and restart trade talks. President Trump stated that both sides were “right back on track,” and indicated China had agreed to purchase more U.S. agricultural products. White House officials also suggested that the U.S. Tech companies will be allowed to sell their products to Huawei Technologies. Last Friday, the S&P 500 capped its best June performance since 1955 and best six-month start to a year in two decades.
On the data front, the Institute for Supply Management released its June manufacturing PMI figure, which fell to 51.7, topping expectations, though still the weakest reading since October 2016. A separate update from research firm Markit showed manufacturing PMI was revised higher last month. Treasuries were weaker, with the yield on the 10-year note up two basis points to 2.02%.
Nine of 11 S&P 500 sectors finished in positive territory as Technology shares paced the gains with chipmaker stocks rallying on the positive trade updates. Financials also outperformed as the group added roughly 1.1%. The defensive Utilities and Real Estate sectors lagged the broader market advance. In commodities, WTI crude added 1.2% to $59.21/barrel after OPEC announced it would extend its production curbs for an additional nine months.