The news that the US and China are open to negotiating to avert a trade war put investors on Monday amusement, giving the market its best day in over two years, and erased about half of its huge losses last week ,  Much of the broad rally went to technology companies, which brought the Dow Jones Industrial Average up nearly 670 points. Microsoft was the biggest winner in the 30 companies Dow and Standard & Poor's 500, climbing nearly 8 percent.
The banks also made solid gains and benefited from a rise in bond yields. Retailers, consumer goods companies and health care titles were among the big winners.
The market's recovery followed the worst week for US equities in two years as investors shifted last week's uncertainty for a more optimistic outlook on trading and a buying opportunity
"Certainly nothing is settled," said Rob Haworth, senior investment strategist at US Bank Wealth Management. "Investors still see this as a half glass market and a constructive economy, so it's not surprising that they are buying on price and buying dips here to rebuild their positions."
The Standard & Poor's 500 Index rose 70.29 points or 2.7 percent to 2,658.55. The Dow Jones Industrial Average rose 669.40 points or 2.8 percent to 24,202.60. The Dow lost more than 1
The Nasdaq added 227.88 points or 3.3 percent to 7,220.54. The Russell 2000 index of smaller companies rose 33.63 points, or 2.2 percent, to 1,543.72.
All in all, the Dow, S & P 500 and Nasdaq posted their best one-day gains since August 2015, more than half of the market's losses on Thursday and Friday
Fears of a trade war weakened sharply last week after President Donald Trump announced tariffs on $ 60 billion worth of Chinese goods in a dispute over technology policy. On Friday, Beijing released a $ 3 billion list of US goods aimed at possible retaliation for a previous US tariff increase against steel and aluminum imports. This led to fears that the dispute could put a strain on global trade and repress the recovery of the global economy.
These fears eased on Monday after the Chinese government declared it was open to negotiations with Washington. This announcement followed a news report indicating that US officials had filed a list of market opening applications.
A foreign ministry spokeswoman, Hua Chunying, did not endorse the Wall Street Journal report, but said on a regular basis: Our door to dialogue and discussion is always open. "
China has not yet said how it could react to Trump's tariff proposals, which did not seem to dampen investor resurgent optimism on Monday."
"This Presidential Customs Declaration was its typical opening salvo in a bargaining process," he said Randy Frederick, Vice President for Trade and Derivatives at Charles Schwab, said, "He's been doing these things in the past, and now it looks like the markets are telling us," Yes, that's exactly what happened. & # 39; Meanwhile, a leading trade negotiator for South Korea Monday said that the nation has agreed to continue opening the car market to the United States as the two countries prepare to change their six-year trade agreement.
Technology companies have last week Recovering some of the sector's big losses, Microsoft rose $ 6.60, or 7.6 percent, to $ 93.78.
Financials El rose as bond yields rose. Higher returns are good for banks because they raise interest rates on mortgages and other loans, making them more profitable for lenders. Bank of America Up $ 1.27 or 4.4 Percent to $ 30.44
The 10-year Treasury yield rose from 2.81 per cent late Friday to 2.85 per cent.
Lowe rose 6.6 percent after the home improvement chairman said CEO Robert Niblock is retiring. The stock gained $ 5.53 to $ 89.30
Facebook ended up barely higher after deleting an early slide triggered by new questions about collecting phone numbers and texting from Android devices. The Federal Trade Commission confirmed on Monday that it is investigating the privacy practices of the social media giant, including whether the company has committed "unfair acts" inflicting "significant injury" on consumers. The stock made a profit of 67 cents or 0.4 percent to $ 160.06.
The traders also had their eye on the latest news from the corporate deal on Monday.
The finish line climbed $ 3.28 or 31.1 percent to $ 13.83 after the session. USG Corp. climbed $ 6.52, or 19.5 percent, to $ 40.03 after the construction product company rejected a bid by Knauf for $ 42 a share.
Benchmark US crude fell 33 cents on the New York Mercantile Exchange at $ 65.55 a barrel. Brent Crude, which was used for the valuation of international oils, lost 33 cents and closed at $ 70.12 in London.
In trading with other energy futures, fuel oil was barely changed at $ 2.02 per gallon. Wholesale gasoline lost 2 cents to $ 2.01 a gallon. Natural gas added 3 cents to $ 2.62 per 1,000 cubic feet.
Gold rose $ 5.10 to $ 1,355 an ounce. Silver won 10 cents at $ 16.68 per ounce. Copper fell 2 cents to $ 2.97 a pound.
The dollar rose from 104.82 yen to 105.22 yen on Friday. The Euro rose from 1.2367 to 1.2455 US Dollars
In Europe, the German DAX fell 0.8 percent, while France's CAC-40 lost 0.6 percent. Britain's FTSE 100 lost 0.5 percent. In Asia, the Nikkei 225 in Tokyo rose 0.7 percent, while Hang Seng in Hong Kong rose 0.7 percent. Sydney's S & P ASX 200 fell 0.5 percent. Seoul Kospi gained 0.8 percent. India's Sensex rose 0.3 percent.