Wall Street stocks finished solidly higher Monday, cheering an announcement that the United States and China sharply de-escalated a trade war that has rattled global markets.
Major indices traded within a tight range in a buoyant session after US President Donald Trump touted a "total reset" of relations with China that included a steep drop in levies between the countries.
The Dow Jones Industrial Average jumped 2.8 percent to close at 42,410.10.
The broad-based S&P 500 rallied 3.3 percent to 5,844.19, while the tech-rich Nasdaq Composite Index rocketed 4.4 percent to 18,708.34.
"The market is clearly looking at the overall trend towards de-escalation," said LBBW's Karl Haeling.
Since returning to the White House, Trump had imposed tariffs of 145 percent on many Chinese imports, while Beijing hit back with duties of 125 percent on US goods.
Following weekend talks between top officials in Switzerland, the United States agreed to temporarily lower its tariffs on Chinese goods to 30 percent while China will reduce its own to 10 percent.
Besides lower levies, the US-China announcement and an agreement last week with Britain "will convince business leaders that a final deal is going to be reached at some point," said a note from Briefing.com.
"This should allow them to make investment/spend decisions," the note said.
However, Haeling said both the deal with Britain and Monday's China announcement leave "a lot of details to be ironed out," meaning there remains uncertainty.
Markets are looking ahead to Tuesday's US consumer price index data for April, which will be scrutinized for evidence on the extent that tariffs result in pricing pressure.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
