Shares of industrial and transportation companies rose amid hopes for a trade compromise between the U.S. and China.
Economic growth in the U.S. might halve this year as a result of President Trump's tariff policies, while the global economy is set to suffer a more modest, but still significant, slowdown, the World Bank warned.
One brokerage said small caps, which, like industrial stocks, are highly cyclical and often domestically focused, are benefiting from a favourable economic backdrop. "Last week's Goldilocks data of an economy running not too hot and not too cool provided a tailwind for small caps," said Adam Turnquist, chief technical strategist for brokerage LPL Financial. "The recent pullback in rates and trade negotiation progress have provided additional support for the space."
In a good sign for industrial activity, shares of Fastenal, a maker of bolts, fasteners and tools, closed at an all-time high.
Daimler Truck and Toyota Motor will merge their Japanese truck units in a move designed to increase efficiencies in development, procurement and production while boosting competitiveness.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
06-10-25 1735ET
