Markets edged higher on Monday as investors welcomed signs of progress in high-stakes trade negotiations between the United States and China. The S&P 500 posted a modest gain of 0.09% to close at 6,005.88—its second consecutive positive session. The Nasdaq Composite rose 0.31% to 19,591.24, while the Dow Jones Industrial Average was virtually flat, slipping just 1.11 points to 42,761.76.
The cautious rally follows renewed diplomatic efforts in London, where top US officials—Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer—met with their Chinese counterparts. Officials are hoping to cement a deal to ease export restrictions and restore flows of critical minerals, which are essential to high-tech and clean energy industries.
Semiconductors surge on deal momentum
Semiconductor stocks led gains on Monday as investors bet on a resolution that could stabilise supply chains and ease bilateral tensions. Qualcomm shares jumped more than 4% after announcing its US$2.4bn acquisition of Alphawave, a UK-based semiconductor firm. Advanced Micro Devices rose 4.8%, Texas Instruments gained 3.5%, and Nvidia ticked higher as well.
Analysts say both Chinese tech stocks and US chipmakers are expected to benefit if the trade talks deliver tangible results.
Apple dips
In contrast, Apple shares fell 1.2% despite unveiling a major iOS redesign at its Worldwide Developers Conference—the first such overhaul since 2013. Market reaction was muted, with some investors awaiting more transformative product announcements later this year.
Commodities and the dollar
Brent crude is trading 0.99% higher at US$67.13 a barrel.
WTI crude is trading 1.1% higher at US$65.29 a barrel.
Spot gold is trading flat at US$3,326.29 an ounce.
Gold futures (COMEX) are trading 0.25% higher at US$3,354.90 an ounce.
One Australian dollar is buying 65.16 US cents.
Futures
Looking ahead, inflation data will take centre stage. The US consumer price index is due Wednesday, followed by the producer price index on Thursday. In Australia, focus turns to Tuesday’s release of NAB’s business confidence survey and Westpac’s June consumer sentiment index.
