Markets shrugged off disappointing data on US factory orders and extended their recovery on Monday.
New orders for American-made goods fell 4.8% in June, according to the Commerce Department, reversing much of May’s 8.3% surge that was driven by a spike in aircraft demand.
Despite the monthly drop, orders were still 3.8% higher than a year earlier.
Manufacturing, which represents just over 10% of the U.S. economy, remains under pressure from tariffs on imports.
An industry survey released Friday pointed to the weakest level of activity in nine months.
President Donald Trump’s tariffs were intended to boost the sector and help fund tax cuts, but economists argue these moves have not overcome issues such as labor shortages and structural constraints.
Even so, markets looked past the lacklustre figures, continuing their bounceback from last week’s declines.
The Dow Jones, which is focused on old-economy makers and builders of products, rose 1%, while the tech-focused Nasdaq was up 1.6% in early trading.