US stocks rose slightly after holding near the unchanged mark for much of the session, as enthusiasm over the US-China trade truce faded after the United States threatened tariffs on additional European goods. Washington’s proposed tariffs on $US4 billion ($A5.7 billion) worth of European Union goods in an extended dispute over aircraft subsidies came just as trade tensions with China seemed to be easing.
Still, stocks have rallied to push the S&P 500 to a record for a second straight session on Tuesday following the US trade truce with China. The benchmark index finished Monday’s session well off its highs, however, as investors questioned the lack of details in the agreement.
The S&P 500 had rallied nearly 7 per cent in June on hopes the two largest economies in the world would find a way to end their trade war. With US and global economic data showing signs of slowing, the focus for investors will now turn to monetary policy and the upcoming earnings season.
The Dow Jones Industrial Average on Tuesday rose 69.25 points, or 0.26 per cent, to 26,786.68; the S&P 500 gained 8.65 points, or 0.29 per cent, to 2,972.98; and the Nasdaq Composite added 17.93 points, or 0.22 per cent, to 8,109.09.
The softening data triggered a drop of about 3 per cent in crude oil prices despite an agreement among oil producers to extend supply cuts and pushed the energy sector down 1.74 per cent, the biggest drag on markets. The defensive real estate, up 1.82 per cent and utilities, up 1.24 per cent sectors were the best performers on the session.Morning-Market-Note-Wednesday-3rd-July