The stock market in the United States showed positive movement during Monday’s trading session because rising oil prices counteracted negative effects from President Donald Trump’s tariffs on manufacturing industries.
The S&P 500 index increased 0.4% to reach near-record levels despite initial negative market movements caused by unfavorable manufacturing statistics. The Dow Jones Industrial Average gained 35 points which represents a 0.1% increase but the Nasdaq achieved a 0.7% gain through its leading technology companies.
The market began with caution after the Institute for Supply Management released manufacturing data which showed U.S. production declined beyond market expectations in May. The data confirmed investor worries about Trump’s forceful trade policies which threaten to slow down industrial expansion.
The market stability came from two major companies: Nvidia increased 1.7% and Meta Platforms climbed 3.6%. The oil prices increased more than 3% after OPEC+ producers announced their plan to increase output which boosted energy stock market optimism.
The rise in crude prices supported energy companies which reduced the negative impact from manufacturing sector challenges. The market experts predict ongoing market volatility because Trump’s changing trade policies will continue to affect worldwide market demand.
The market uncertainty surrounding tariffs remains unresolved despite commodity prices showing signs of recovery according to Edward Moya who serves as senior market analyst at OANDA.
Market participants will examine this week’s employment data and Federal Reserve decisions while the possibility of interest rate cuts remains under discussion. The market shows broad-based strength which indicates investors maintain positive outlook despite ongoing trade conflicts.
