The United States and China have reached a “framework consensus” on a trade deal, Chinese state media reported, the latest optimistic sign on the dynamics between the powerful governments.
“One of the surest ways to get this market to rally is to have positive stories about trade negotiations,” said Steve Sosnick of Interactive Brokers.
About 5 minutes into trading, the Dow Jones Industrial Average was up 0.5 percent at 47,457.85.
The broad-based S&P 500 gained 0.9 percent to 6,849.62, while the tech-rich Nasdaq Composite Index jumped 1.4 percent to 23,531.57.
US President Donald Trump and China’s Xi Jinping are scheduled to meet later this week. Chinese Foreign Minister Wang Yi told US Secretary of State Marco Rubio that the two sides “reached a framework consensus on reciprocal solutions to current pressing economic and trade issues,” Wang told Rubio, according to a readout of their Monday call published by state broadcaster CCTV.Markets are also pricing in an expected Federal Reserve interest rate cut on Wednesday, while monitoring a heavy calendar of earnings that includes tech giants Microsoft and Amazon.Among individual companies, Huntington Bancshares fell 3.2 percent after announcing it will acquire Cadence Bank for $7.4 billion in an all-stock transaction in the latest union of regional banks. Cadence rose 4.1 percent.