U.S. Stocks Rally Despite U.S.–China Trade Tensions

The S&P 500 erased early losses on Monday, brushing off renewed frictions between the United States and China that threatened to ignite a global trade war. By the close at 4:00 p.m. ET (20:00 GMT), the Dow Jones Industrial Average had added 35 points (0.1%), the S&P 500 climbed 0.5%, and the Nasdaq 100 gained 0.7%. This rebound follows a strong May, during which the S&P 500 rallied over 6%—its best month since November 2023.

Why Stocks Recovered

1. Monthly Momentum: After a 6% gain in May, many investors viewed Monday's pullback as modest profit‑taking, not the start of a larger downturn.

2. Macro Resilience: Key U.S. economic data—strength in consumer spending and labor markets—continues to support risk assets, even as trade rhetoric heats up.

3. Rotation into Growth: Technology and communications sectors led the late‑day rally, suggesting appetite for higher‑beta names remains intact.

For a real‑time view of which U.S. equities and sectors are driving today's market action, check out the top movers via the Market - Most Active API.

Fresh U.S.-China Trade Clash

Earlier on Monday, China's Commerce Ministry blasted President Trump's claim that Beijing violated the Geneva agreement reached in mid‑May. That Geneva pact paused triple‑digit tariffs for 90 days and saw China lift countermeasures on critical metals for U.S. tech manufacturing.

• Trump's Friday Claim: China had allegedly backtracked on promises to roll back tariffs on U.S. goods.

• Beijing's Response: Labeling those accusations “groundless,” China warned of “forceful measures” to protect its interests.

• Treasury's Take: Last week, U.S. Treasury Secretary Scott Bessent said talks with Beijing had stalled, fueling uncertainty.

Trade negotiation dates and policy decisions—such as any WTO filings or new tariff deadlines—can be tracked via the Economics Calendar API, ensuring you stay ahead of potential market‑moving events.

What Investors Should Watch

1. Upcoming Tariff Deadlines: Watch for any announcements as the 90‑day tariff pause expires in mid‑August.

2. U.S. Economic Data: With core inflation and labor market reports coming later this week, any surprise could magnify swings in equities.

3. Sector Leadership: Keep an eye on tech and communication services for signs of renewed risk appetite or rotation into defensives if trade tensions escalate.

Despite the latest U.S.-China jabs, strong underlying U.S. fundamentals and recent index momentum helped markets shrug off Monday's headwinds. By tracking active stocks in real time and key trade‑policy dates, investors can better navigate any volatility that emerges from renewed tariff threats.