US stocks were little changed on Monday as investors awaited further clarity from the latest round of US-China trade negotiations in London.
The S&P 500 hovered near the flatline, while the Nasdaq Composite edged up 0.1%. The Dow Jones opened 55 points lower, or 0.1%, reflecting a cautious tone in the market.
Monday’s session followed two straight weeks of gains for all three major indexes.
The S&P 500 closed above the 6,000 level on Friday for the first time since February 21, and now sits less than 3% below its record high.
Traders are watching closely as officials from both countries meet in London, following a phone call last week between President Donald Trump and Chinese President Xi Jinping.
The discussions are seen as a key step toward preventing a broader trade conflict after both sides agreed to a temporary tariff truce last month.
Amid the geopolitical backdrop, Citigroup raised its year-end target for the S&P 500 to 6,300 from 5,800, implying a potential upside of about 5% from current levels.
In a note, strategist Scott Chronert acknowledged the persistent policy uncertainty but said market fundamentals remain intact.
“High policy volatility is likely to continue,” Chronert wrote, “but what the first half has shown is that fundamental volatility may be more manageable despite ongoing headlines around tariffs, taxes, budget deficits, interest rates, and geopolitics.”
He added that Citigroup favors buying on pullbacks rather than chasing rallies.
US China trade talks hope
US President Donald Trump’s senior trade officials are meeting Chinese counterparts in London on Monday to address the ongoing trade dispute between the world’s two largest economies.
The US delegation includes Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer.
China’s Vice Premier He Lifeng, the lead trade negotiator, will attend the talks, scheduled as part of the “China-US economic and trade consultation mechanism” from June 8 to 13.
The talks come after a recent phone call between Trump and Chinese President Xi Jinping aimed at averting a full-scale trade war.
The diplomatic push follows weeks of escalating tariffs imposed by both sides since April, culminating in a 90-day tariff truce agreed in Geneva last month.
Under that agreement, the US temporarily cut tariffs on Chinese imports from 145% to 30%, while China lowered its duties on US goods from 125% to 10%.
Since then, both countries have accused each other of violating the deal.
The US alleges delays by China in approving critical mineral exports, while China criticizes new US restrictions on student visas and export controls on semiconductor technology.
White House Press Secretary Karoline Leavitt said Sunday that the London talks will focus on progressing the Geneva agreement, emphasizing the strategic importance both countries place on continued market access.
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