U.S. equities finished the first trading session of the week higher, as global trade concerns continued to thaw amid reports talks this week between the U.S. and China may to lead to a summit between President Trump and Chinese President Xi Jinping. However, caution ahead of this week’s Fed gathering in Jackson Hole, Wyoming, and continued pressure on the technology sector kept gains in check. Treasury yields and the U.S. dollar dipped amid a quiet economic calendar, while crude oil and gold prices were higher.

The Dow Jones Industrial Average (DJIA) rose 89 points (0.4%) to 25,759, the S&P 500 Index increased 7 points (0.2%) to 2,857, and the NASDAQ Composite advanced 5 points (0.1%) to 7,821. In moderately-light volume, 632 million shares were traded on the NYSE and 1.7 billion shares changed hands on the NASDAQ. WTI crude oil increased $0.21 to $65.42 per barrel and wholesale gasoline added $0.04 to $2.02 per gallon. Elsewhere, the Bloomberg gold spot price gained $5.15 to $1,189.40 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—was 0.2% lower at 95.89.

U.S. stock indexes have moved within striking distance of record highs on quiet summer trading. However, we see some signs below the surface that risks are rising and the potential for more volatility and pullbacks is growing. Earnings season was stellar but the risk is that the expectations bar is getting set too high. Economic growth continues to be solid, but the rate of improvement may be leveling off, while trade/tariff concerns and the Fed inject more uncertainty for investors. The Fed has expressed little concern, but financial conditions have gotten tighter this year, which has implications for markets.

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