Technology companies and banks helped power stocks higher on Wall Street 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. The dispute threatened to raise costs for American companies and consumers and expand a global trade war that already includes China.
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.
"Relief in trade tensions, in terms of Mexico, and hope for relief in trade tensions with China seem to be helping the market today," said Willie Delwiche, investment strategist at Baird.
The S&P 500 index gained 13.39 points, or 0.5%, to 2,886.73. The benchmark index rose 4.4% last week, its best weekly performance of 2019. It's now about 2% below its record set on April 30.
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 Russel 2000 index of smaller companies gained 9.17 points, or 0.6%, to 1,523.56.
Stock indexes in Europe finished broadly higher.
The latest gains build on the market's momentum from last week, when a lackluster U.S. jobs report appeared to increase the odds that the Federal Reserve will have to cut interest rates in coming months.
Last week, Federal Reserve Chairman Jay Powell held out the possibility that the central bank will soon cut rates to protect the economic recovery from any damage resulting from the Trump administration's multiple trade disputes.