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Stock market today: Nasdaq leads gains to kick off new quarter as Tesla pops 6%

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Political turmoil in France gripped investors weighing whether stocks can build on their stellar first-half performance.

US stocks edged higher on Monday to start the quarter as investors began counting down to the July 4 break and the key US jobs report. The Dow Jones Industrial Average rose 0.1% while the S&P 500 gained 0.3%. The tech-filled Nasdaq Composite climbed about 0.9%. Tesla stock popped roughly 6% ahead of the EV giant's quarterly delivery results due out on Tuesday.

Encouraging signs that inflation is slowing toward the Federal Reserve's target, plus emerging cracks in the economy, have spurred hopes for a policy pivot. US manufacturing activity data released on Monday showed the Institute for Supply Management's manufacturing PMI fell further into contraction territory in June, hitting a four-month low. In the meantime, the prospect of political gridlock in France is gripping investors after the first round of voting in national elections.

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