U.S. stocks closed slightly higher Monday as investors shrugged off concerns over a tumultuous G-7 meeting over the weekend at which President Donald Trump lashed out at U.S. allies.
Wall Street also prepared for the hotly anticipated meeting between Trump and North Korea leader Kim Jong Un in Singapore, set to occur on Tuesday.
The Dow Jones industrial average finished 5.78 points higher at 25,322.31, with gains in UnitedHealth, Home Depot, and Boeing offsetting losses in McDonald's and 3M. The S&P 500 rose 0.11 percent to close at 2,782 as a rise in telecommunications and consumer staples led the 11 sectors higher.
President Trump and his administration escalated criticism of Canadian Prime Minister Justin Trudeau and international trade over the weekend at the annual G-7 summit that took place in Quebec, Canada.
The conclusion of the two-day summit, where Trump met with leaders from Europe and Canada, resulted in the U.S. incumbent refusing to endorse the joint G-7 statement that called for a reduction of tariffs — sparking tensions between him and fellow G-7 leaders.
He criticized Canadian counterpart Trudeau of "betrayal," saying that the prime minister's comments on U.S. tariffs were "very dishonest & weak."
"Trump doesn't care about convention at all. Therefore it creates an air of unpredictability that markets don't really like," said Maris Ogg, president at Tower Bridge Advisors. "Politics doesn't usually play a chance in short-term market movement. But there's a chance this week it could spill over and impact sentiment."
Ogg added that while trade tensions or geopolitics could impact markets this week, second-quarter earnings — and how Wall Street reacts to them — are likely the most important factor for investors.
The global trade talks ended as the U.S. president headed to Singapore, where he's set to meet with North Korean leader Kim Jong Un in a historic sit-down on Tuesday. The two are expected to discuss future relations and denuclearization, alongside other subjects.
While no major results are expected to come out of this initial meeting, investors hope the meeting will reinforce relations between the isolated state of North Korea and the rest of the world.
Despite trading woes and the summit with North Korea, U.S. Treasurys slipped across the board Monday, with the yield on the benchmark 10-year note rising to 2.95 percent. Bond yields move inversely with their prices.