scorecardUS stocks climb as economic-reopening hopes overshadow protests, China tensions
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US stocks climb as economic-reopening hopes overshadow protests, China tensions

Ben Winck   

US stocks climb as economic-reopening hopes overshadow protests, China tensions
Stock Market2 min read

  • US stocks traded climbed on Monday as optimism around economic reopenings offset nationwide protests and new trade stresses between China and the US.
  • A key measure of US manufacturing increased in May for the first time in four months, inspiring confidence in an economic recovery.
  • The Chinese government halted the import of American farm goods early Monday, further inflaming tensions and striking at a key component from the nations' phase-one trade deal.
  • Markets generally ignored protests against police brutality. Gun stocks surged following a weekend filled with violence, looting, and property damage.
  • Watch major indexes update live here.

US equities climbed on Monday as investors' hopes for a swift economic rebound offset nationwide protests and escalating tensions between the US and China.

Major indexes initially slumped after Chinese government officials ordered companies to halt imports of US farm products. The purchases were a key component in the two countries' phase-one trade deal. The import pause fueled new worries that the economic powers could resume their tit-for-tat trade conflict after a months-long hiatus.

Stocks turned positive later in the morning as investors continued to bet on a smooth reopening. US manufacturing data from the Institute of Supply Management showed the industry stabilizing after a four-month plunge.

Here's where US indexes stood at the 4 p.m. ET market close on Monday:

Read more: GOLDMAN SACHS: Buy these 25 beaten-down stocks all poised to jump more than 18% from current levels

"We expect U.S.-China tensions to impact investor sentiment toward the region, which could dampen the otherwise positive economic impacts of China's reemergence from economic shutdown," Lauren Goodwin, economist and multi-asset portfolio strategist at New York Life Investments, said Monday.

Markets generally ignored the weekend's nationwide protests against police brutality. While COVID-19 cases have trended lower throughout the US in recent weeks, experts fear the demonstrations could fuel a second wave of infections.

Read more: MORGAN STANLEY: The market's hottest stocks are in danger of being disrupted to a degree not seen since the Great Recession. Here's how to adjust your portfolio for the coming shift.

Gun stocks including Sturm Ruger, Smith & Wesson, and Axon rocketed through the session. Such equities typically turn higher in the wake of civil unrest and fears of gun-control legislation.

Pfizer sank as much as 9% after halting phase 3 breast-cancer treatment trials. The company said the therapy was "unlikely to show a statistically significant improvement" in survival rates.

West Texas Intermediate crude declined, falling as much as 3.4%, to $34.27. International benchmark Brent crude was markedly higher, climbing 9.5%, to $38.68 per barrel, at intraday highs.

Now read more markets coverage from Markets Insider and Business Insider:

Goldman Sachs starts shorting the dollar as economic reopenings boost foreign currencies

The Fed unveils top corporate-bond ETFs targeted in its $1.3 billion stimulus spree

'Embrace the coming crash': A notorious market bear who called the dot-com bust warns big tech stocks are on the verge of succumbing to the economy's downturn

Read the original article on Business Insider