Stocks shrug off trade drama en route to gains.
U.S. stocks traded higher on Monday, as investors shrugged off weekend trade tensions ahead of a high-profile summit with North Korea’s Kim Jong Un.
The large-cap S&P 500 Index (NYSEARCA:SPY) gained 0.1% to 2,782.00, with seven of 11 primary sectors finishing higher. Telecom services and consumer staples were the biggest gainers on the day.
Dow industrials (NYSEARCA:DIA) pared gains to finish at 25,322.31, where it was little changed.
Meanwhile, the technology-driven Nasdaq Composite Index (NYSEARCA:QQQ) gained 0.2% to 7,659.93.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) was little changed at the beginning of the week, as calm continued to prevail on Wall Street. The market’s favorite fear gauge closed at 12.35 on a scale of 1-100 where 20 represents the historic mean.
There were no major data releases scheduled for Monday. On Tuesday, the Department of Commerce will release the latest reading of consumer inflation, a report that has direct implications on monetary policy.
Federal Reserve officials also touch down in Washington on Tuesday for the first of a two-day meeting. The Fed is widely expected to raise interest rates by a quarter percentage point the following afternoon.
The Final Word: U.S. President Trump and North Korea’s Kim Jong Un have touched down in Singapore for an historic meeting on Tuesday. Although no agreement is expected, the face-to-face meeting signals a profound shift from the fury rhetoric of the last six months. For investors, this is a positive.