Stocks fluctuated Tuesday, with the S&P 500 eking out another record close. Positive sentiment surrounding last weekend’s U.S.-China trade truce appeared to fade, though trade remained in focus. Washington is now considering additional tariffs on $4 billion of imports from the European Union, as part of a lingering dispute over aircraft subsidies. Meanwhile, President Trump reportedly said Monday that renewed negotiations with China have “already begun” since the G-20 summit sideline talks. The Dow added 69 points, while the S&P 500 gained 0.3%. The Nasdaq Composite was up 0.2%.
Treasuries rallied despite no notable economic releases, with the yield on the 10-year note down four basis points to 1.98%. U.S. government bond yields tracked U.K. rates lower following dovish comments from Bank of England Governor Carney. Following Thursday’s Fourth of July holiday, Friday’s non-farm payrolls report will likely garner attention, with 164,000 jobs expected to have been added in June, well above May’s disappointing 75,000 figure. This will follow Wednesday’s ADP report, which is anticipated to reveal 140,000 jobs were added in the private sector in June, bouncing back from the prior month’s 27,000 number.
Seven of 11 S&P 500 sectors closed in positive territory, with Real Estate, Utilities, and Communication Services jumping more than 1%. Energy shares lagged, with WTI crude reversing course from Monday’s five-week high, slumping 4.8% to $56.25/barrel amid renewed concerns of a slowdown in global demand. S&P 500 trading volume was roughly 12% below the 30-day average. COMEX gold climbed 1.9% to $1,415.70/ounce, rebounding from Monday’s largest one-day decline in over two years.