04:46 PM EDT, 06/02/2025 (MT Newswires) -- US benchmark equity indexes advanced Monday following reports that President Donald Trump and his Chinese counterpart, Xi Jinping, may hold talks at a time when tensions between the two economic heavyweights have resurfaced.

The Nasdaq Composite rose 0.7% to 19,242.6, while the S&P 500 climbed 0.4% at 5,935.9. The Dow Jones Industrial Average added 0.1% to 42,305.5. Barring industrials, most sectors ended in the green, led by energy.

Trump and Xi could speak one-on-one "very soon," CNBC reported Monday, citing a senior White House official. On Sunday, Treasury Secretary Scott Bessent also hinted at upcoming talks between the two leaders, The Wall Street Journal reported.

China's Ministry of Commerce said Monday the US violated a preliminary trade deal reached between the two countries in Switzerland. On Friday, Trump accused China of breaching the pact.

Last month, the US and China agreed to suspend most tariffs on each other's imports for 90 days.

Several steel and aluminum stocks advanced on Monday after Trump said on Friday that he planned to double duties on metal imports, effective Wednesday.

Shares of Steel Dynamics ( STLD ) and Nucor ( NUE ) both jumped 10%, the top S&P 500 gainers. Steel manufacturer Cleveland-Cliffs' ( CLF ) shares soared 23%.

"US domestic steel producers are operating at (about 78%) utilization rates and therefore have capacity to increase production," UBS said in a Monday note. "Sustained 50% tariffs opens the door for the reintroduction of previously unprofitable idled capacity and new capacity to enter the market in the medium to long term."

The European Commission on Saturday said Trump's plan to increase steel tariffs "undermines ongoing efforts to reach a negotiated solution," Reuters reported. A European Commission spokesperson reportedly said that the European Union is ready to impose "countermeasures."

US Treasury yields were higher, with the 10-year rate increasing 4.1 basis points to 4.45% and the two-year rate also rising 4.1 basis points to 3.95%.

In economic news, Institute for Supply Management data showed a third straight monthly contraction for the manufacturing sector.

"The outlook for the manufacturing sector looks downbeat, particularly with the initial surge in demand from front-loading now behind us," Oxford Economics said. "The still-elevated prices index indicates inflationary pressures are set to rise in the months ahead."

Separately, S&P Global ( SPGI ) indicated faster expansion in May sequentially. While manufacturers' overall sentiment improved last month partly due to the suspension of tariffs, "uncertainty clearly remains elevated amid the fluid tariff environment," S&P Global Market Intelligence Chief Business Economist Chris Williamson said.

West Texas Intermediate crude oil was up 3.6% at $62.98 a barrel.

Over the weekend, eight members of the Organization of the Petroleum Exporting Countries and its allies agreed to raise output by 411,000 barrels a day from next month, the same increase level as the previous two months.

In company news, Science Applications International's ( SAIC ) fiscal first-quarter earnings trailed analysts' estimates, while the US government services contractor expects business volatility to continue in the near term amid the Trump administration's focus on gaining efficiency. Science Applications ( SAIC ) shares slumped 13%.

Sanofi ( SNY ) agreed to acquire biopharmaceutical company Blueprint Medicines ( BPMC ) in a deal worth up to $9.5 billion, as the French drugmaker seeks to expand its immunology portfolio. Sanofi's ( SNY ) US-listed shares fell 0.4%, while Blueprint Medicines ( BPMC ) advanced 26%.

Gold was up 2.8% at $3,406.70 per troy ounce, while silver jumped 5.7% to $34.91 per ounce.