US stocks close lower as investors remain cautious over trade tensions

US indices ended lower at the close of the second trading session of the week, as investor caution persisted despite recent easing in trade-related concerns. Markets also monitored the kickoff of the second-quarter earnings season.

The Dow Jones Industrial Average fell 0.38%, or 155 points to close at 40,368 points.

The S&P 500 dropped 0.17% to close at 5,396 points, while the Nasdaq Composite remained stable at 16,823points.

Despite a 2.75% decline in Wall Street’s fear gauge — the VIX index — to around 30 points, U.S. markets remained cautious. The drop came as President Donald Trump exempted certain technology imports from reciprocal tariffs imposed on several countries, including China.

In Europe, the Stoxx Europe 600 index rose 1.65% to 508 points, supported by gains in the banking and real estate sectors.

France's CAC 40 rose 0.85% to 7,335 points, while the UK's FTSE 100 gained 1.4%, closing at 8,249 points. Meanwhile, Germany's DAX added 1.45%, ending the session at 21,253 points.

In Japan, the Nikkei 225 climbed 0.85% to 34,267 points, while the broader Topix index gained 1%, reaching 2,513 points.

The oil market witnessed a negative performance in today’s session amid weak global demand outlook. Brent crude futures for June delivery fell 0.30% to $64.67 per barrel.

US WTI crude futures for May delivery declined 0.30%, or 20 cents, to $61.33 per barrel.

Gold futures for June delivery saw a rise of 0.4%, reaching $3,240. as investor demand for safe-haven assets continued.