S&P 500 Inches Higher as U.S.-China Trade Talks Reignite Investor Optimism

U.S. stocks edged higher Monday, buoyed by a renewed wave of optimism after trade discussions between the U.S. and China resumed on a positive note in London.

• S&P 500: +0.1%

• NASDAQ Composite: +0.3%

• Dow Jones Industrial Average: flat

The broader market extended last week's gains, which were sparked by a robust U.S. labor market report. However, investor sentiment remains fragile amid civil unrest in Los Angeles and continued uncertainty over U.S. trade policy under President Donald Trump.

Citigroup Lifts S&P 500 Target to 6300

Citigroup (NYSE:C) added fuel to the bullish case, raising its year-end S&P 500 target to 6300, citing:

• A more constructive outlook on market fundamentals

• Expectations that the current valuation environment will persist

The index closed above 6000 on Friday for the first time since February 21.

Trade Progress: Tariffs on Hold (for Now)

Following Monday's meeting in London, U.S. Commerce Secretary Howard Lutnick described the U.S.-China talks as “fruitful.”
U.S. Treasury Secretary Scott Bessent echoed the sentiment, suggesting further discussions could build on the Geneva truce from last month.

President Trump's proposed reciprocal tariffs are now temporarily shelved until August 12, offering a narrow window for diplomacy before escalation.

China's Export Data Slips

Despite the positive tone, challenges remain. Fresh data showed China's export growth slowed to a 3-month low in May, highlighting the drag from existing U.S. tariffs.

Market Watch: Stay Informed with Sector-Wise P/E Trends

To understand which sectors might outperform or lag in a trade-sensitive environment, monitor the Sector P/E Ratio. It gives real-time insights into valuation shifts across key sectors—vital when geopolitics and macro forces collide.

Eyes on Inflation Next

Markets are now shifting focus to a key U.S. Consumer Price Index (CPI) report due later this week, which could influence rate expectations and market direction.