The Dow recorded its biggest one-day point gain since 2008 on Monday, as reports of trade talks between the U.S. and China reduced fears of a possible trade war.
The Dow Jones Industrial Average climbed 669.40 points, or 2.84%, to 24,202.60 at the close. The Nasdaq Composite rose 227.88, or 3.26%, to 7,220.54, while the S&P 500 Index gained 70.29, or 2.72%, to 2,658.55.
The rally followed the worst week for equities in more than two years, driven in part by investors’ concerns about U.S. tariffs targeting China. President Donald Trump announced on Thursday that he approved of a plan to impose tariffs on about $50 billion in Chinese imports. China responded by saying it would pursue reciprocal tariffs, targeting $3 billion in U.S. goods such as steel, wine and pork.
But U.S. Treasury Secretary Steven Mnuchin told Fox News that he has spoken to Chinese officials, adding that he’s “hopeful” the two sides can reach an agreement on trade. Reports suggest that the U.S. is seeking greater access to Chinese markets as part of the negotiations.