Reports confirming that President Trump and President Xi are likely to communicate this week came from multiple White House officials, and Wall Street managed to shake off its recent slump on Monday, with all four major US indices closing higher. Amid heightened tensions in US-China trade relations and disappointing recent manufacturing data, the market opened the month of June on a downward note. However, the news of a potential Trump-Xi call improved market sentiment, leading to a rebound.

Additionally, Trump announced a significant increase in tariffs on all imported steel to the US, raising them from 25% to 50%, which has driven several US steel companies’ stock prices higher, despite expert warnings that such high tariffs have complex and costly implications. Cleveland-Cliffs, based in Ohio, saw its stock surge by 23%.

According to reports from sources like CNBC, US Treasury Secretary Scott Bessent met with China's Vice Premier He Lifeng last month in Geneva, with both parties agreeing to suspend most tariffs for 90 days. This eased tensions temporarily, but they have escalated again since then.

Jay Woods, Chief Global Strategist at Freedom Capital Markets, noted that if the dialogue between the US and Chinese leaders yields clear results, the market could see another rally, potentially hitting new record highs. Conversely, ongoing uncertainties may lead to continued volatility.

By the close on the 2nd, the Dow Jones Industrial Average rose by 35.41 points, or 0.08%, to close at 42305.48 points; the S&P 500 increased by 24.25 points, or 0.41%, to 5935.94 points; the Nasdaq climbed by 128.84 points, or 0.67%, to 19242.61 points; and the Philadelphia Semiconductor Index rose by 74.72 points, or 1.57%, to 4832.78 points.