A welcome truce in the escalating U.S.-China trade dispute put investors in a buying mood Monday, sending U.S. stocks solidly higher and extending the market's gains from last week.
The broad rally, which lost some of its early morning momentum, followed gains in overseas markets as investors welcomed news of the temporary, 90-day stand-down, which was agreed to over dinner between President Donald Trump and his Chinese counterpart Xi Jinping at the G-20 summit over the weekend.
The long-running dispute between the world's two largest economies has rattled investors for months, stoking traders' fears that it could begin dragging down corporate profits and weighing on global economic growth.
"We're going to have to see what happens over these 90 days," said Tom Martin, senior portfolio manager at Globalt Investments. "In the meantime, you're not getting an increase in the tariffs, so that's an interim positive."
U.S. traders observed a moment of silence before markets opened Monday in honor of former President George H.W. Bush, who died Friday at 94. The New York Stock Exchange and Nasdaq said they will close trading Wednesday in observance of a national day of mourning for Bush.
The S&P 500 index climbed 1.1 percent, to 2,790.37. The Dow Jones Industrial Average jumped 287.97 points, or 1.1 percent, to 25,826.43. The average was up as much as 441 points earlier.
The Nasdaq composite rose 1.5 percent, to 7,441.51. -- AP