Dow rises 100 points as US-China trade concerns abate
The Dow Jones industrial average rose 100 points, with DowDuPont and Caterpillar as the best-performing stocks in the index. The S&P 500 gained 0.4 percent, with materials and tech outperforming. The Nasdaq composite advanced 0.4 percent.
President Donald Trump pledged Sunday to help Chinese technology firm ZTE Corp to "get back into business, fast" after a U.S. ban had significantly hampered the Asian company.
Trump's tweet on Sunday came ahead of second round of trade talks between the U.S. and China this week. Trade officials are seeking to find a way to resolve an ongoing trade dispute, although Beijing has already said it will not change its current position over the coming days.
"For the President to become suddenly concerned about Chinese jobs is quite a volte-face," said Jonathan Fenby, chairman of China research at TS Lombard. "The most probable explanation can only be that he wants to butter up Xi with a concession on the trade front to get China's help to make [North Korean leader] Kim Jong-un amenable to a deal at the Singapore summit, in an application of linkage he advanced last year of Korea and China trade issues."
Trump and Kim are scheduled to meet in Singapore on June 12. The encounter between the two leaders would mark the first ever meeting between a U.S. president and a North Korean leader.
Chip stocks rose Monday after a report said Chinese regulators will restart a review of the proposed acquisition of NXP Semiconductors by Qualcomm. NXP shares jumped 10 percent on the news, while Qualcomm's stock gained 2.2 percent. The iShares PHLX Semiconductor ETF (SOXX) rose nearly 1 percent on the news.
Equities came into the session riding strong gains from last week. The Dow posted its biggest weekly gain since March last week while the S&P 500 and Nasdaq climbed 2.4 percent and 2.7 percent, respectively.
In corporate news Monday, Xerox fell nearly 4 percent after the company abandoned a $6.1 billion deal with Japanese firm Fujifilm as part of a settlement between Carl Icahn and Darwin Deason.