The final results of the session indicate that the Dow Jones Industrial Average gained 1.12%, the Nasdaq advanced by 1.37%, and the broad S&P 500 increased by 1.07%.
“Investors are relieved to see that tensions with China seemed to be eased over the weekend,” summarized Art Hogan of B. Riley Wealth Management in a statement.
On Saturday, Beijing and Washington agreed to hold new negotiations to prevent further escalation in tariffs.
In October, Donald Trump had threatened to impose additional tariffs of 100% on products from China in response to its decision to restrict exports of so-called rare earths, later declaring that such tariffs were “not viable.”
Jose Torres from Interactive Brokers commented, “The White House seeks to alleviate fears over a prolonged trade conflict (…) which would hamper growth prospects.”
On the macroeconomic front, investors “hope to soon gain a better understanding of the state of the American economy,” noted Hogan.
Since October 1, Republicans and Democrats have been in a stalemate in Congress regarding budget approval, causing a federal government shutdown, which has resulted in the non-publication of various economic statistics and indicators.
Meanwhile, several quarterly corporate results are expected in the coming days, including Netflix and Coca-Cola on Tuesday, Tesla on Wednesday, and Intel on Thursday.
