The U.S. stocks climbed up after Chinese President Xi Jinping and the U.S. President Donald Trump agreed for a 90-day truce regarding the trade deal, which was heavily weighing on stock markets globally.
The Dow Jones Industrial Average jumped 287.97 points to close at 25, 826.43 and the S&P 500 rose 1.1 percent to end the day at 2,790.37. The sector of consumer discretionary was the best performing one in the S&P 500 that climbed 2.5 percent. Meanwhile, the Nasdaq Composite mounted 1.5 percent to close at 7,441.51. Apple and Amazon gained 3.5 percent and 4.9 percent, respectively. At its high, the Dow surged over 442 points.
Both the presidents met for dinner at the G-20 summit in Argentina on Saturday. They agreed on to hold off additional tariffs on one another’s goods, whereas talks will likely to begin at starting of the next year. The U.S. approved to leave out tariffs on Chinese goods worth $200 billion at 10 percent.
Earlier, it was decided by the White House that if the two countries will not arrive at an agreement after 90 days then, tariffs will be lifted up to 25 percent. After a tweet posted by President Trump that China approved to cut down tariffs on cars, shares of Ford, Tesla, and General Motors all climbed more than 1.8 percent. Boeing and Caterpillar rose 3.8 percent and 2.4 percent, respectively.
Steel stocks like the VanEck Vectors Steel ETF rose 3.2 percent, U.S. steel climbed 3 percent, and AK steel gained 6 percent. As of now, China has imposed tariffs on U.S. goods worth of $110 billion. Soybeans futures gained more than 1 percent while shares of Deere rose 4.7 percent after the news.
The U.S. dollar index that marks the greenback against a basket of currencies traded at 96.766 after stirring a high of 96.961.