News of an agreement between the United States and China to keep tariffs low for a three-month period while trade negotiations continue gave American stocks a strong boost on Monday.
The Dow Jones Industrial Average climbed 2.8 percent, the S&P 500 advanced 3.3 percent, and the Nasdaq jumped 4.4 percent.
Investors are increasingly hopeful that ongoing talks could prevent a full-blown trade war between the two economic giants—an outcome that would otherwise threaten global economic growth.
Easing trade tensions allowed market participants to shift their focus back to corporate developments, especially companies posting strong earnings.
NRG Energy surged 26 percent after reporting robust quarterly results and announcing the acquisition of natural gas assets that broaden its operational reach and capacity. Meanwhile, shares of Zebra Technologies rose 12 percent following the launch of new manufacturing automation products.
Following two days of discussions in Switzerland, trade officials from the US and China agreed to temporarily reduce import tariffs from 125 percent to 10 percent for 90 days while negotiations continue.
