Technology companies and banks helped power stocks higher on Wall Street on Monday as investors welcomed news that the U.S. and Mexico averted a trade war and potentially damaging tariffs.
The latest gains extend the market’s winning streak to a fifth day. That follows the strongest week for stocks since November in what has been a marked turnaround for the market after escalating trade tensions fueled a turbulent skid in May.
Some of those trade jitters eased a bit Monday, at least in regard to the trade spat between the U.S. and Mexico. President Donald Trump suspended plans to impose tariffs on Mexican goods after the countries struck a deal on immigration.
During an interview with CNBC, Trump said Monday that he expects to meet with Chinese President Xi Jinping at the Group of 20 summit in Japan later this month. That may have given investors some cause for optimism in the dispute between Washington and Beijing, though Trump noted that an additional wave of U.S. tariffs on Chinese goods will go into effect if the Xi refuses to meet at the summit.
The S&P 500 index gained 13.39 points, or 0.5%, to 2,886.73.
The Dow Jones Industrial Average rose 78.74 points, or 0.3%, to 26,062.68. The Nasdaq composite climbed 81.07 points, or 1.1%, to 7,823.17. The Russell 2000 index of smaller companies gained 9.17 points, or 0.6%, to 1,523.56.