US stocks closed higher as investors remained wary of President Donald Trump's new tariff threats ahead of a busy week of economic data and earnings season.
Trump escalated trade tensions by announcing plans to impose 30% tariffs on most imports from the European Union (EU) and Mexico starting August 1.
The EU opted to extend a pause on retaliatory measures until early August, hoping for a breakthrough. The White House also said talks with the EU, Canada and Mexico were continuing.
The Dow Jones Industrial Average rose 0.20% to 88.14 points, the S&P 500 added 0.14% to 8.81 points, while the tech-focused Nasdaq rose 0.27% to 54.80 points.
The US consumer price index (CPI) report will be the focus of the New York session tonight, influencing the central bank's monetary policy decisions and also impacting the market.
The market will also await the US producer price index (PPI) report due on Wednesday, which is expected to provide a glimpse into supply chain pressures.
Meanwhile, Bitcoin's surge past $120,000 for the first time has fueled gains in crypto stocks. Coinbase shares rose 1.8% and MicroStrategy rose 3.8%.
Trading volume on US exchanges was $15.43 billion, compared to a 20-day average of $17.62 billion.
