Major U.S. stock indexes rose Monday as the U.S. -China trade war, which has clouded stock market prospects for most of the year, truncated.
The S& P 500 index climbed more than 1%, and last week recorded its biggest weekly percentage increase in nearly seven years.
Investors were encouraged by news over the weekend that US President Trump and Chinese President Xi Jinping agreed not to impose new tariffs for 90 days during talks in Argentina. After months of escalating tensions over trade and other issues, the two countries declared a truce.
"Today is mainly to celebrate some of the worst possible scenarios that the United States and China have postponed their trade relations." Michael Arone, chief investment strategist at State Street Global Advisors, said.
However, the main index closed below its earlier high in the session.
Arone pointed out that "there are still some very difficult problems to be solved" between the world's two major economies.
Keith Lerner, chief market strategist at SunTrust Advisory Services, called the stock market a "resilient rebound" today.
"The reason you can't see further gains and the market may have fallen from its peak is that when the dust settles, people realize that there are still many doubts. They only have 90 days to negotiate," he said.
The Dow Jones industrial average. DJI rose 287.97 points, or 1.13%, to 25,826.43; the S&P 500 index. SPX rose 30.2 points, or 1.09%, to 2,790.37; and the Nasdaq index. IXIC rose 110.98 points, or 1.51%, to 7,441.51.
Last week, the S& P 500 index rose 4.8% as investors interpreted the comments of the Federal Reserve as suggesting that interest rate hikes in the United States might not be as radical as they had feared. The index rebounded after confirming its second 10% revision this year and is now up 4.4% from last year's closing level.
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