Wall Street opens higher as traders eye US-China talks, inflation data; S&P 500 inches closer to record

Wall Street Opens Higher as Traders Eye US-China Talks, Inflation Data; S&P 500 Inches Closer to Record

US equities opened modestly higher on Monday, with the S&P 500 edging closer to record territory as investors looked ahead to a pivotal week packed with macroeconomic data, trade negotiations, and corporate headlines.

Shortly after the opening bell, the S&P 500 rose 0.1%, maintaining its momentum after Friday’s surge above the 6,000 mark for the first time since February 21. The Nasdaq Composite gained 0.3%, while the Dow Jones Industrial Average hovered around the flatline, reflecting a more measured start to the session.

The gains come on the back of a strong two-week rally across all three indices, driven in part by easing concerns around US economic resilience and trade disruptions. “The message of the market is still one that is largely pretty constructive,” said Chris Verrone, chief market strategist at Strategas. He noted that cyclicals continuing to outperform defensives signals market confidence in the underlying health of the economy.

Markets are awaiting the outcome of renewed US-China trade talks scheduled to take place in London on Monday — a fresh attempt to revive negotiations that stalled after the Geneva round earlier this year. While expectations remain cautious, President Donald Trump expressed optimism last week about reaching a potential breakthrough. Any progress could provide a further boost to equities, which have already shrugged off soft patches in recent economic data.

Investors are also bracing for key inflation prints, with the Consumer Price Index (CPI) due Wednesday, followed by the Producer Price Index (PPI) on Friday. These data points are expected to provide clarity on how price pressures — including those linked to tariff impacts — are evolving. Additionally, the University of Michigan’s consumer sentiment survey on Friday will shed light on household inflation expectations, a critical Fed watchpoint.

Elsewhere, US Treasury yields saw minor pullbacks as traders positioned for Thursday’s $22 billion 30-year bond auction — a key test of investor demand amid fiscal concerns. Oil prices remained steady above $66 per barrel, supported by hopes of easing trade tensions, while gold declined and the US dollar edged higher.

The tone remains cautiously optimistic, with traders ready to reassess their outlook based on how trade discussions unfold and whether inflation data reinforces bets on policy stability. With the S&P 500 now within 3% of its record closing high, this week’s headlines could determine whether the market’s bullish momentum holds or fades.