NEW YORK, New York - U.S. stocks rose Monday but gains were limited due to more tariffs uncertainty as the U.S. prepares to take on China. Steel companies rose sharply with gains from near 10 percent to twenty percent after Presiudent Donald Trump on the weekend announced an increase of tariffs on steel and aluminium imports from 25 percent to fifty percent. 

"It is my great honor to raise the Tariffs on steel and aluminum from 25% to 50%, effective Wednesday, June 4th. Our steel and aluminum industries are coming back like never before. This will be yet another BIG jolt of great news for our wonderful steel and aluminum workers," Trump posted on Truth Social on Saturday.

He made the announcement on Friday while speaking to workers at U.S. Steel's Mon Valley Works–Irvin Plant in suburban Pittsburgh. He also announced a $5,000 bonus for U.S. Steel workers. Trump recently approved Japan-based Nippon Steel's plan to take part ownership of U.S. Steel. 

U.S. Markets

• Standard and Poor's 500 (^GSPC): Gained 24.25 points (0.41 percent) to close at 5,935.94, led by tech and consumer discretionary stocks.

• Dow Jones (^DJI): Edged up 35.41 points (0.08 percent) to 42,305.48, with modest gains across industrials and financials.

• Nasdaq (^IXIC): Outperformed, surging 128.85 points (0.67 percent) to 19,242.61, as megacap tech stocks fueled the rally.

Key Drivers

• Tech Strength: AI-related stocks and semiconductor firms led the Nasdaq's advance.

• Commodity Boost: The TSX benefited from rising oil and gold prices.

• Fed Speculation: Traders await Wednesday's CPI data for clues on rate cuts.

Market Outlook

Analysts expect volatility midweek with inflation data and Fed Chair Powell's testimony in focus. A softer CPI print could extend the rally, while upside surprises may trigger profit-taking.

U.S. Dollar Weakens Against Major Currencies as Euro, Pound, Aussie and Kiwi Rally

The  U.S. dollar faced broad pressure in Monday's foreign exchange trading, slipping against most major currencies as risk sentiment improved and traders weighed shifting central bank expectations.

Key Movers

• EUR/USD: The euro surged 0.84 percent to 1.1442, its strongest level in weeks, as European economic data bolstered confidence.

• GBP/USD: Sterling climbed 0.75 percent to 1.3546, supported by expectations of prolonged higher UK interest rates.

• USD/JPY: The dollar fell 0.94 percent against the yen to 142.69, retreating amid a pullback in Treasury yields.

• AUD/USD: The Australian dollar jumped 0.95 percent to 0.6493, benefiting from commodity strength.

• NZD/USD: The New Zealand dollar outperformed, soaring 1.34 percent to 0.6038, its biggest daily gain in a month.

Dollar Under Pressure

The U.S. Dollar Index (DXY) extended losses, weighed down by:

• A 0.64 percent drop against the Swiss franc (*USD/CHF: 0.8166*).

• A 0.20 percent decline versus the Canadian dollar (*USD/CAD: 1.3706*).

Market Drivers

• Fed Expectations: Traders scaled back bets on aggressive US rate hikes after mixed jobs data.

• Commodity Currencies: The Aussie and Kiwi drew support from rising metal and dairy prices.

• Safe-Haven Flows: The yen and franc gained as Middle East tensions lingered.

Outlook

Analysts noted the dollar's retreat could continue if Tuesday's US inflation data underwhelms. Meanwhile, the euro and pound may extend gains on hawkish ECB and BoE rhetoric.

Global Equity Markets Show Mixed Performance as Key Indices Close with Modest Gains and Losses

Global stock markets delivered a mixed performance on Monday, with some indices edging higher while others retreated amid fluctuating investor sentiment.

Canadian Market

• S&P/TSX Composite (^GSPTSE): Jumped 213.91 points (0.82 percent) to 26,388.96, supported by strong performances in energy and materials sectors.

UK and Europe

• FTSE 100 (^FTSE): The UK's benchmark index closed at 8,774.26, up 1.88 points (0.02 percent).

• DAX (^GDAXI): Germany's DAX slipped 66.81 points (0.28 percent) to 23,930.67.

• CAC 40 (^FCHI): France's key index declined 14.69 points (0.19 percent) to 7,737.20.

• EURO STOXX 50 (^STOXX50E): The pan-European index fell 11.03 points (0.21 percent) to 5,355.56.

• Euronext 100 (^N100): The broader European index dipped 0.89 points (0.06 percent) to 1,578.33.

• BEL 20 (^BFX): Belgium's index rose 4.75 points (0.11 percent) to 4,506.83.

Asia and Pacific

• Hang Seng (^HSI): Hong Kong's index dropped 131.80 points (0.57 percent) to 23,157.97.

• STI Index (^STI): Singapore's Straits Times Index lost 4.02 points (0.10 percent) to 3,890.59.

• S&P/ASX 200 (^AXJO): Australia's main index fell 20.60 points (0.24 percent) to 8,414.10.

• All Ordinaries (^AORD): The broader Australian index declined 22.80 points (0.26 percent) to 8,637.50.

• S&P BSE SENSEX (^BSESN): India's Sensex slipped 77.26 points (0.09 percent) to 81,373.75.

• IDX Composite (^JKSE): Indonesia's benchmark tumbled 110.75 points (1.54 percent) to 7,065.07.

• FTSE Bursa Malaysia KLCI (^KLSE): Malaysia's index dropped 10.63 points (0.70 percent) to 1,508.35.

• S&P/NZX 50 (^NZ50): New Zealand's index surged 137.59 points (1.12 percent) to 12,418.89.

• KOSPI (^KS11): South Korea's index inched up 1.30 points (0.05 percent) to 2,698.97.

• TWSE (^TWII): Taiwan's market plunged 344.59 points (1.61 percent) to 21,002.71.

• Nikkei 225 (^N225): Japan's key index fell sharply by 494.43 points (1.30 percent) to 37,470.67.

China

• SSE Composite (000001.SS): Shanghai's index declined 15.96 points (0.47 percent) to 3,347.49.

Middle East & Africa

• TA-125 (^TA125.TA): Israel's index gained 14.31 points (0.53 percent) to 2,724.72.

• EGX 30 (^CASE30): Egypt's benchmark dropped 174.90 points (0.54 percent) to 32,325.10.

• Top 40 USD Net TRI (^JN0U.JO): South Africa's index jumped 116.40 points (2.26 percent) to 5,268.80.