Wall Street kicked off July with a record high for S&P 500 index after a cease-fire in the U.S. trade war with China put investors in a buying mood.

The milestone marks the second time in less than two weeks that the benchmark index closed at a record high. The S&P 500 is now up 18.3% for the year.

The broad rally came after the world's two biggest economies agreed over the weekend to resume negotiations. The truce, which involves the U.S. holding off on imposing new tariffs on $300 billion in Chinese goods, gave financial markets reason to breathe a little easier.

The new tariffs would have come on top of existing tariffs that remain in place. Investors have been worried the fallout from the tariffs could hurt global economic growth and corporate profits. Those concerns prompted the Federal Reserve last month to declare its willingness to cut interest rates if the dispute hurts the U.S. economy.

"It's really a de-escalation of the tough talk we've heard from both sides on tariffs," said Jeff Zipper, managing director at U.S. Bank Private Wealth Management. "It's basically kicking the can down the road with some more optimism that a deal is going to get done and negotiations are going to continue."

The S&P 500 index rose 22.57, or 0.8%, to 2,964.33. The index last set a record high on June 20.

The Dow Jones Industrial Average gained 117.47 points, or 0.4%, to 26,717.43. The Dow had been up 290 points. The Nasdaq composite rose 84.92 points, or 1.1%, to 8,091.16.

The Russell 2000 index of smaller company stocks added 3.09 points, or 0.2%, to 1,569.66.

The truce between the U.S. and China, along with some upbeat economic data, also helped push global shares higher.

Presidents Donald Trump and Xi Jinping hit the reset button in their trade negotiations over the weekend at the Group of 20 meeting in Osaka, Japan. On Saturday, Trump said the U.S. would hold off for the "time being" plans to impose new tariffs on $300 billion in Chinese goods.

Technology stocks and banks accounted for much of the gains Monday as traders turned their backs on more defensive holdings, pushing bond and gold prices lower. Utilities and real estate stocks lagged the market in another sign that Wall Street had a bigger appetite for risk.

Chipmakers rallied on plans by the U.S. to loosen some restrictions on sales to Huawei. Broadcom climbed 4.3% and Micron Technology gained 3.9%. Technology giants Apple and Microsoft also rose.

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