Stocks surge amid signs of improving trade relations between U.S. and China.
U.S. stocks advanced briskly on Monday, with the Dow Jones Industrial Average (NYSEARCA:DIA) adding triple digits as China and the United States moved closer to establishing a new trade agreement.
The blue-chip index surged 298.20 points, or 1.2%, to close at 25,013.29. That was the highest settlement in over two months.
Twenty-eight of 30 Dow blue chips contributed to the rally, with Boeing and United Technologies leading the way higher.
The broader S&P 500 Index (NYSEARCA:SPY) gained 0.7% to close at 2,733.01. Ten of 11 primary sectors contributed to the gains, with industrials adding 1.6%. Shares of telecommunication services rose 1.3% and energy added 0.9%.
Meanwhile, the technology-heavy Nasdaq Composite Index (NYSEARCA:QQQ) rose 0.5% to close at 7,394.04.
A measure of 30-day volatility known as the CBOE VIX (NYSEARCA:VXX) ebbed lower at the start of the week. The so-called “fear index” fell 2.4% to close at 13.10.
In commodities, oil prices rebounded sharply on Monday, with Brent crude futures approaching $80 a barrel. The international benchmark rose 92 cents, or 1.2%, to $79.43 a barrel. U.S. West Texas Intermediate (WTI) futures added $1.19, or 1.7%, to $72.47 a barrel.
The White House announced on Saturday that China had agreed to buy more U.S. goods and services. Though specific details were omitted, traders viewed the statement as a positive step toward normalizing trade relations between the two superpowers.
The Final Word: Stocks are riding high on newfound optimism concerning the United States and China. The U.S. trade deficit with China stood at $375 billion in 2017.