Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., June 5, 2025.
Brendan McDermid | Reuters
Stocks rose on Monday as President Donald Trump’s officials met with their Chinese counterparts in an effort to resolve trade issues between the two economic giants.
The S&P 500 added 0.3%, while the Nasdaq Composite climbed nearly 0.4%.The Dow Jones Industrial Average gained 106 points, or 0.4%.
Officials from the U.S. and China held trade talks on Monday in London, with U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer representing the U.S. National Economic Council Director Kevin Hassett told CNBC on Monday that the U.S. was seeking confirmation that China would restore critical mineral exports.
“The purpose of the meeting today is to make sure that they’re serious … to literally get handshakes … and get this thing behind us,” Hassett told CNBC’s “Squawk Box.” “Our expectation is that … immediately after the handshake, any export controls from the U.S. will be eased, and the rare earths will be released in volume, and then we can go back to negotiating smaller matters.”
The talks come after Trump and Chinese President Xi Jinping held a lengthy phone call last week. Last month, the two countries agreed to temporarily cut tariffs while trade negotiations proceeded.
Shares of several semiconductor stocks rose on Monday. Qualcomm jumped more than 4% after the chipmaker announced it will acquire semiconductor firm Alphawave for $2.4 billion. Shares of Advanced Micro Devices and Texas Instruments each added more than 4%, while Nvidia shares ticked higher. Alibaba gained 2%.
“Investors are taking bullish trades today on China large caps and U.S. semiconductor stocks, which are both beneficiaries of U.S./China trade talks,” said Larry Tentarelli, chief technical strategist for Blue Chip Daily Trend Report.
Separately, Apple shares lost 1.5% as the company held its 2025 Worldwide Developers Conference, during which it announced its first new iPhone operating system redesign since 2013.
Inflation data is expected to be a key topic later in the week. The latest consumer price index is due out on Wednesday, followed by the producer price index on Thursday. Traders will be looking for clues as to how the current tariff rates are flowing through the economy.
Monday’s moves come after all three of the major indexes notched their second-straight winning week. The S&P 500 on Friday closed above the 6,000 level for the first time since Feb. 21, and is now less than 3% away from its record closing high.
“With the S&P 500 closing above 6,000 for the first time since February, stocks are effectively looking through the current tariff uncertainty into a more stimulative economic climate,” said Richard Saperstein, chief investment officer of investment advisor practice Treasury Partners
Correction: The producer price index will be released Thursday morning. A previous version of this story misstated the timing.
