Dow surges 300 points as US-China trade war is placed 'on hold'
The Dow Jones industrial average jumped 300 points, with Caterpillar and General Electric as the best-performing stocks in the index. The Dow also traded above 25,000 for the first time since mid-March.
The S&P 500 gained 0.8 percent as tech jumped 1.3 percent. The Nasdaq composite climbed 1 percent as Micron led semiconductor shares higher.
Treasury Secretary Steven Mnuchin later said over the weekend the prospect of a trade war was "on hold" following an agreement to suspend tariff threats.
On Saturday, negotiators from the world's two largest economies said they would continue talking about measures under which Beijing would import more energy and agricultural commodities from the U.S. in an effort to bridge the $335 billion annual U.S. goods and services trade deficit with China.
Mnuchin told CNBC on Monday the U.S. has made "very meaningful progress" with China on trade matters. "Now it's up to both of us to make sure that we can implement it," Mnuchin told "Squawk Box."
Trump touted the deal, tweeting: "China has agreed to buy massive amounts of ADDITIONAL Farm/Agricultural Products - would be one of the best things to happen to our farmers in many years!"
"In our view the fundamentals remain attractive for further upside in equities stateside and globally in the months ahead so long as progress persists in trade talks with China," said John Stoltzfus, chief investment strategist at Oppenheimer Asset Management.
Wall Street also got a boost Monday amid a slew of dealmaking news.
General Electric will merge its transportation business with Wabtec — a rail equipment maker — in a deal worth $20 billion. GE shares rose 2.5 percent.
Meanwhile, Fifth Third Bancorp agreed to buy MB Financial for $4.7 billion in cash and stock. MB Financial shares surged 14 percent.