NEW YORK, June 9 (Reuters) - Global stocks rose on Monday while the dollar slipped as talks began in London between the United States and China aimed at cooling a trade dispute between the world's two largest economies.
The trade dispute between the two countries has expanded beyond tit-for-tat tariffs to restrictions over rare earths, threatening to cripple supply chains and slow global growth.
"The talks will have to go on for some time before we decide whether or not there's actual progress being made. However, most investors remain hopeful that there will be some positive results," said Peter Andersen, founder at Andersen Capital Management.
On Wall Street, the S&P 500 and Nasdaq were higher, with the S&P 500 tech sector (.SPLRCT), leading gains. The Dow was modestly lower, weighed down by weakness in Travelers (TRV.N), and McDonald's (MCD.N), the latter of which was downgraded by Morgan Stanley to an "equal-weight" rating.
The Dow Jones Industrial Average (.DJI), fell 164.43 points, or 0.38%, to 42,598.44, the S&P 500 (.SPX), rose 4.70 points, or 0.08%, to 6,005.06 and the Nasdaq Composite (.IXIC), rose 91.29 points, or 0.47%, to 19,622.33.
MSCI's gauge of stocks across the globe (.MIWD00000PUS), rose 1.56 points, or 0.17%, to 893.52 and was on track for its second straight session of gains, and fifth in the last six.
In Europe, stocks were just below the unchanged mark with the pan-European STOXX 600 (.STOXX), index down 0.08%.
The U.S. dollar slipped against most major currencies on Monday, as optimism over a better-than-expected U.S. employment report on Friday was offset by caution ahead of the trade talks.
U.S. economic data showed wholesale inventories increased in April amid stockpiling of prescription medication in anticipation of tariffs from the Trump administration.
Investors are also awaiting U.S. inflation data on Wednesday that may adjust expectations for the timing of any rate cuts by the Federal Reserve. The market is currently pricing in a 62% chance for a cut of at least 25 basis points at the central bank's September meeting, according to LSEG data.
Fed officials are in a blackout period ahead of the June 18 policy decision.
The dollar index , which measures the greenback against a basket of currencies, shed 0.04% to 99.07, with the euro up 0.11% at $1.1407.
U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer will represent Washington in talks with China, U.S. President Donald Trump said in a social media post.
China's foreign ministry said Vice Premier He Lifeng will be in Britain for the first meeting of the China-U.S. economic and trade consultation mechanism.
U.S. Treasury yields were little changed at the start of the week, after Friday's jobs report pushed yields higher. The yield on benchmark U.S. 10-year notes fell 1.8 basis points to 4.492%.
U.S. crude rose 1.02% to $65.24 a barrel and Brent climbed to $67.04 per barrel, up 0.86% on the day on hopes a trade deal could boost the global economic outlook.
Reporting by Chuck Mikolajczak; Additional reporting by Nell Mackenzie in London and Rocky Swift in Tokyo and Kanchana Chakravarty and Sukriti Gupta in Bengaluru; Editing by Susan Fenton
