Updated 2 min read
In This Article:
US stocks edged higher on Monday as investors looked to renewed US-China trade talks for signs either side is willing to dial down tensions and reach a tariff deal.
The S&P 500 (^GSPC) rose 0.3% after the benchmark edged above 6,000 to notch its highest close since February. The Dow Jones Industrial Average (^DJI) drifted up 0.2%, while the tech-heavy Nasdaq Composite (^IXIC) gained about 0.5%.
The focus is on high-level US-China trade talks that began in London on Monday, after a phone call between President Trump and Chinese President Xi last week.
Read more: The latest on Trump's tariffs
The stakes are high amid warnings that tariff barriers will harm economies worldwide — the US in particular. Investors are looking for a revival of the momentum shown in the Geneva pact in mid-May. Relations have soured since then, with the US and China accusing each other of not keeping to the trade truce and ratcheting up pressures in other areas.
For now, markets appear to have shaken off the volatility that has plagued markets following Trump's early-April tariff hikes. Stocks ended last week on a high note, as encouraging jobs data helped ease fears of a recession fueled by his policy overhaul.
The economic highlight this week is May US consumer inflation print due on Friday, with the wholesale inflation report ushering it in on Thursday.
On the corporate front, Apple (AAPL) kicks off its big annual WWDC developers conference on Monday. Wall Street is watching for more insight into the company's AI plans, though not on the lines of last year's splashy announcements.
Meanwhile, investors are keeping a wary eye on escalating tensions in Los Angeles after Trump sent in the National Guard to deal with anti-deportation protests.
LIVE 14 updates
The bull case for stocks is growing among Wall Street strategists
Yahoo Finance's Josh Schafer reports:
Read more here.
Apple announces new operating system redesign called 'Liquid Glass'
Apple (AAPL) announced a new operating system redesign called "Liquid Glass" on Monday.
The new design was unveiled at its annual Worldwide Developers Conference, an event where the iPhone maker announces its latest tech advancements.
Apple shares were down more than 1.5% during the event.
Tesla stock little changed despite robotaxi test poised to start this week
Yahoo Finance's Pras Subramanian reports:
Read more here.
IBM hits all time high, market cap surpasses $250 billion for first time
Shares of International Business Machines (IBM) hit all-time highs on Monday, surpassing a market cap of $250 billion for the first time in the company's history.
IBM stock is up more than 23% year to date as recent acquisitions have helped the company, once known for computer mainframes, enter the high-growth software and services space.
Over the past year, the stock is up roughly 60%.
Americans are feeling a bit safer in their jobs
New data from the New York Fed suggests Americans are gaining confidence in the labor market, even as broad uncertainty around trade policy, interest rates, and other unknowns clouds the economic outlook.
According to the New York Fed’s May 2025 Survey of Consumer Expectations, the perceived chance that the US unemployment rate will rise over the next year fell by 3.3 percentage points to 40.8%.
It’s a notable drop as the labor force remains mostly stable. But the figure still sits above the 12-month average of 37.7%, suggesting caution hasn’t disappeared entirely.
Consumers are also feeling a bit more secure in their own roles. The perceived likelihood of losing a job over the next year fell to 14.8%, the lowest level since early this year. At the same time, the expected quit rate, or the probability of voluntarily leaving one’s job, nudged slightly higher to 18.3%.
Inflation expectations also cooled in May, mirroring the improved outlook in the labor market, just ahead of this Wednesday’s Consumer Price Index (CPI) release.
Tesla recovers from 4% drop, trades flat despite two Wall Street analyst downgrades
Tesla (TSLA) recovered from a 4% drop on Monday, following two analyst downgrades after CEO Elon Musk's public feud with President Trump.
Baird has downgraded the stock from Outperform to Neutral, citing excessive optimism surrounding the company's Robotaxi rollout, fading EV tax credits, and the public clash between Musk and Trump, which sent the stock reeling last week.
Argus Research also lowered its recommendation to Hold, pointing out the political fallout from Musk's war of words with Trump.
The company is reportedly planning to launch its latest robotaxi on Thursday, June 12.
Circle surges 15%, extends gains for third day in a row following blockbuster IPO
Circle's stock (CRCL) surged for a third day in a row on Monday following its blockbuster IPO last week.
Shares of the stablecoin issuer gained more than 15% to trade near $122 per share, raising the company's market cap to roughly $24 billion.
The move follows gains on Thursday and Friday, when the stock rose as much as 200% shortly after its long-anticipated public market debut.
Stocks rise amid China-US trade talks
Stocks edged higher on Monday amid hopes that US-China trade talks will ease tariff tensions and eventually lead to a permanent deal between the two leading economies.
The S&P 500 (GSPC) rose to just above the flat line, after the broad benchmark closed on Friday at its highest level since February. The Dow Jones Industrial Average (^DJI) gained 0.1%, while the tech-heavy Nasdaq Composite (^IXIC) edged 0.2% higher.
High-level trade talks between Beijing and Washington began in London on Monday. This follows a phone call between President Trump and Chinese leader Xi Jinping last week.
What to expect from Apple's WWDC event as Wall Street looks for AI gains
Apple's annual Worldwide Developers Conference (WWDC) kicks off in Cupertino, Calif., today.
While investors may get another taste of artificial intelligence features, including AI-powered Siri, Apple isn't expected to deliver any big announcements.
The company will likely showcase new features and designs for iOS, iPadOS, macOS, and watchOS. There's always a chance it will debut a new piece of hardware too.
Apple (AAPL) stock rose 0.5% in premarket trading ahead of the event.
Read our tech editor's preview of everything to expect from Apple WWDC 2025.
Robinhood shares fall as S&P 500 inclusion hopes dashed
Robinhood (HOOD) stock slipped 4% after it didn't make it into the benchmark S&P 500 index as some speculated it might.
S&P Dow Jones Indices did not make any changes to S&P 500 membership as part of its quarterly rebalancing.
Reuters reports:
Warner Bros. Discovery announces it will split into two companies, shares jump
Shares of Warner Bros. Discovery (WBD) rose more than 6% in premarket trading on Monday after the media company said it would split into two companies.
Warner Bros. will separate its studios and streaming business, which includes HBO Max, and its cable television networks, including CNN. The split is expected to be completed by mid-2026.
Reuters reports:
Good morning. Here's what's happening today.
Trending tickers: Robinhood, Tesla and Strategy
Here are some top stocks trending on Yahoo Finance in premarket trading:
Robinhood (HOOD) stock fell 5% before the bell on Monday after the S&P Dow Jones Indices made no changes to the S&P 500 in its quarterly rebalancing.
Tesla (TSLA) stock also dropped on Monday in premarket trading after CEO Elon Musk criticized President Trump's tax bill.
Strategy (MSTR) stock rose on Monday by 2%. A SEC filing revealed the company had purchased 705 bitcoin during the period of May 26 to June 1 at an aggregate purchase price of $75.1M.
Goldman and MS join the Wall Street crowd upbeat on US stocks
