The S&P 500 closed slightly higher on Monday after President Donald Trump signaled he was open to negotiating trade agreements, including with key partners like the European Union. The comments boosted investor confidence that a global trade war could still be avoided.
By 4:00 p.m. ET, the Dow Jones Industrial Average had gained 88 points, or 0.2%. The S&P 500 edged up 0.1%, while the Nasdaq Composite rose 0.3%, ending the session at a new record close of 20,640.33.
Trump Suggests Flexibility on Trade Tariffs
Following a series of letters sent over the weekend outlining potential tariffs—including a 30% duty on imports from Mexico and the EU—Trump said Monday that the letters represent openings for negotiation.
“The letters are the deals. The deals are made. There are no deals to make,” Trump told reporters at the White House. “We are always open to talk, including to Europe. In fact, they’re coming over. They’d like to talk.”
Investors are hoping that agreements will be reached before August 1, when a pause on reciprocal tariffs is set to expire. The tariff implementation, initially scheduled for July 9, was temporarily delayed.
Meanwhile, U.S. customs duties surged to a record $113.3 billion in gross collections during the first nine months of fiscal 2025. Treasury Secretary Scott Bessent projected that this could climb to $300 billion by December, marking a significant source of federal revenue.
Bank Earnings to Lead Corporate Reporting Season
The corporate earnings season kicks off this week, with major financial institutions such as JPMorgan Chase (NYSE:JPM), Bank of America (NYSE:BAC), and Wells Fargo (NYSE:WFC) set to report results.
Other notable companies releasing earnings include Netflix (NASDAQ:NFLX), Johnson & Johnson (NYSE:JNJ), and 3M Company (NYSE:MMM).
Industrial supplier Fastenal (NASDAQ:FAST) gained after beating Wall Street expectations for both second-quarter profit and revenue, fueled by strong demand for its safety products.
Key Inflation Data Ahead
Beyond the headlines on trade, investor focus this week will shift to June’s Consumer Price Index (CPI) data, due Tuesday. The report is expected to offer insights into the Federal Reserve’s next move on interest rates.
Economists forecast a 0.3% month-over-month increase in CPI for June, up from May’s 0.1%. Year-over-year inflation is expected to rise to 2.6%, compared to 2.4% previously.
At its June meeting, the Fed held interest rates steady in a target range of 4.25% to 4.5%. Futures markets currently see little chance of a cut in July, but expect policy easing to begin in September.
Crypto Stocks Soar as Bitcoin Hits Record
Crypto-linked stocks surged as Bitcoin crossed the $123,000 mark for the first time. Shares of Marathon Digital Holdings (NASDAQ:MARA), MicroStrategy (NASDAQ:MSTR), and Coinbase Global (NASDAQ:COIN) rallied, with Coinbase hitting a new all-time high.
The gains come as inflows into spot Bitcoin ETFs accelerate, driven by investor optimism over more favorable U.S. regulation and increasing institutional adoption.
Kenvue CEO Resigns Amid Investor Pressure
Kenvue (NYSE:KVUE) shares rose after CEO and board member Thibaut Mongon resigned, marking the company’s second major leadership change amid mounting pressure from activist investors seeking improved performance.
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