Wall Street kicked off June with modest gains, as investors appeared largely unfazed by a fresh flare-up in global trade tensions. The S&P 500 rose 0.41% to close at 5,935.94, while the Nasdaq Composite added 0.67%, ending the session at 19,242.61. The Dow Jones edged up 35 points to finish at 42,305.48.
Despite rising geopolitical friction, the major indices continued the positive momentum from May, when the S&P 500 notched its best monthly performance since late 2023, gaining more than 6%. The Nasdaq surged over 9% for the month, and the Dow added about 4%.
Trade disputes resurface
Tensions between the US and China re-emerged after Beijing accused Washington of failing to uphold a recent trade agreement. This comes after a temporary 90-day suspension of tariffs had been brokered during talks in Geneva between US Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng. Markets are now awaiting a possible phone call between President Trump and President Xi Jinping later this week, which some analysts say could provide critical direction for global markets.
US steel stocks surge
Meanwhile, tensions have also escalated between the US and European Union following Trump’s announcement that US steel tariffs will double from 25% to 50%. The EU criticised the move, warning it would hurt both economies.
US steel stocks rallied on the news. Cleveland-Cliffs jumped 23%, while Steel Dynamics and Nucor each gained around 10%.
Commodities and the dollar
Brent crude is trading 3.65% higher at US$65.07 a barrel.
WTI crude is trading 2.85% higher at US$62.52 a barrel.
Spot gold is trading flat at US$3,381.61 an ounce.
Gold futures (COMEX) are trading 2.47% higher at US$3,397.20 an ounce.
One Australian dollar is buying 64.92 US cents.
What’s ahead in Australia
Attention turns to the Fair Work Commission’s annual award wage decision at 10am AEST. NAB expects a modest rise of around 3.5%, given that inflation is now below 3%.
Also on the agenda: RBA minutes from the May meeting will be released at 11.30am, followed by a speech from Assistant Governor Sarah Hunter at 1pm in Brisbane.
The SPI futures are pointing to a 69 point rise.
