US stocks rose on Friday, adding to solid weekly gains, but their rise was kept in check amid increasing tensions between the U.S. and key trade partners as the G-7 summit kicked off.
The Dow Jones industrial average closed 75.12 points higher at 25,316.53, as UnitedHealth and Home Depot contributed the most to the gains. The S&P 500 gained 0.3 percent to 2,779.03 as consumer staples rose more than one percent. The Nasdaq composite closed 0.1 percent higher at 7,645.51.
For the week, the major averages all rose at least 1.2 percent.
On Friday, President Donald Trump arrived at the meeting, along with other world leaders — including those who currently govern nations that Trump has inflicted tariffs upon.
One aspect that’s put investors on edge is a fresh tweet by Trump, in which he accused France and Canada of levying “massive tariffs” and establishing “non-monetary barriers.”
This came after French President Emmanuel Macron told reporters that while the U.S. incumbent may not mind being isolated, the other leaders could sign a six-country agreement if needs be.
This is “historically unprecedented,” Benn Steil director of international economics at the Council on Foreign Relations, told CNBC’s “Squawk on the Street” on Friday. “This G-7 summit is really shaping up to be more of a G-6 tribunal with America in the docket.”
“We are moving in the direction of a trade war. It’s really quite remarkable. Despite the fact that the president’s advisors have identified China as the villain of the peace on trade, Trump’s tariffs disproportionately hit America’s G-7 allies,” Steil said.
The moves Friday come after U.S. markets finished Thursday’s session on a mixed note. While the Dow closed in the black on Thursday, the Nasdaq fell from a record high and the S&P also closed lower. The mixed session was driven in part by a sell-off in tech shares and concerns over emerging markets.
“Yesterday’s minor hiccup … should offer a reminder that the road that stocks will take to refresh their historic peaks from late January will not be linear especially with emerging markets struggling with a stronger dollar and the rhetoric surrounding global trade amplifying,” said Jeremy Klein, chief market strategist at FBN Securities.
“Nevertheless, the favorable prospects for corporate executives to churn out windfall profits should ultimately drag the broader indices beyond their previous highs,” said Klein.
In corporate news, Apple dropped 1 percent after Nikkei reported the company is warning suppliers about a sharp decline in parts orders.
Despite Friday’s decline, it was a solid week for Apple and the rest of the technology sector. The overall technology sector gained 0.7 percent this week, led by shares of chip maker Advanced Micro Devices and Micron, which rose more than 5.5 percent. Meanwhile, Apple is also up 0.7 percent this week.