On the losing side of Wall Street was Warner Bros. Discovery, which flipped from a big early gain to a loss of 3 per cent after saying it would split into two companies. One will get Warner Bros. Television, HBO Max and other studio brands, while the other will hold onto CNN, TNT Sports and other entertainment, sports and news television brands around the world, along with some digital products.
Tesla recovered some of its sharp, recent drop. The electric vehicle company tumbled last week as Elon Muskโs relationship with Trump broke apart, and it rose 4.6 per cent Monday after flipping between gains and losses earlier in the day.
The frayed relationship could end up damaging Muskโs other companies that get contracts from the US government, such as SpaceX. Rocket Lab, a space company that could pick up business at SpaceXโs expense, rose 2.5 per cent.
All told, the S&P 500 rose 5.52 points to 6,005.88. The Dow Jones Industrial Average slipped 1.11 to 42,761.76, and the Nasdaq composite rose 61.28 to 19,591.24.
In stock markets abroad, indexes were modestly lower in Europe after rising across much of Asia.
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Chinese markets climbed even though the government reported that exports slowed in May, growing 4.8 per cent from a year earlier after jumping more than 8 per cent in April. China also reported that consumer prices fell 0.1 per cent in May from a year earlier, marking the fourth consecutive month of deflation.
Stocks rallied 1.6 per cent in Hong Kong and rose 0.4 per cent in Shanghai.
In the bond market, the yield on the 10-year Treasury eased to 4.48 per cent from 4.51 per cent late Friday. It fell after a survey by the Federal Reserve Bank of New York found that consumersโ expectations for coming inflation eased a bit in May.
That provides some relief for the Fed, which has been keeping its main interest rate steady as it waits to see how much Trumpโs tariffs will raise inflation and how much they will hurt the economy. A persistent increase in expectations for inflation among US households could drive behavior that creates a vicious cycle that only worsens inflation.
Economists expect a report coming on Wednesday to show inflation across the country accelerated last month to 2.5 per cent from 2.3 per cent.
AP
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