Stocks rose on Tuesday, though gains were kept in check after the U.S. threatened a new wave of tariffs on European goods, dampening recent optimism surrounding the Washington-Beijing trade truce.
The Dow Jones Industrial Average recovered 69.25 points to finish at 26,697.45.
The S&P 500 added 8.68 points and posted a record closing high at 2,973.01
The NASDAQ Composite recouped 17.93 points to 8,109.09
Losses in bank shares also kept a lid on the broader market, however. Citigroup shares fell 0.4% while Bank of America and Wells Fargo dropped more than 0.9% each.
The U.S. government on Monday threatened to impose tariffs on $4 billion of additional European Union goods in a long-running dispute over aircraft subsidies. The U.S. Trade Representative's office released a list of products — including olives, Italian cheese and Scotch whiskey — that could be hit with new levies in additional to those introduced in April.
The new wave of proposed duties comes amid a 15-year dispute at the World Trade Organization over aircraft subsidies given to U.S. aerospace manufacturer Boeing and its European rival, Airbus.
Chipmakers and other tech companies helped buoy the S&P 500 to at all-time high on Monday on the heels of improved U.S.-China trade talks. President Donald Trump and Chinese President Xi Jinping agreed not to impose new levies on U.S. and Chinese goods after meeting on the sidelines of the G-20 summit in Japan on Saturday.
Though Trump said the meeting went as well as it could have, the U.S. president said Monday that any trade deal with Beijing would be “somewhat tilted” in favor of Washington.
This month marks the longest economic expansion in U.S. history, reaching 10 years. However, U.S. GDP growth in that time has been lackluster relative to other expansions.
Prices for the benchmark 10-year U.S. Treasury were higher, lowering yields to 1.98%, from Monday's 2.02%. Treasury prices and yields move in opposite directions.
Oil prices were down $2.73 to $56.36 U.S. a barrel.
Gold prices were up $27.30 to $1,416.60 U.S. an ounce.