Stocks moved mostly higher over the course of the trading day on Monday, rebounding following the pullback seen in the previous session. With the upward move on the day, the Nasdaq and the S&P 500 ended the session at new record closing highs.
The Nasdaq and the S&P 500 saw further upside going into the close, while the narrower Dow posted a more modest gain. While the Dow rose 83.28 points or 0.3 percent to 28,907.05, the Nasdaq jumped 95.07 points or 1 percent to 9,273.93 and the S&P 500 advanced 22.78 points or 0.7 percent to 3,288.13.
The strength on Wall Street came amid continued optimism about impact of the phase one U.S.-China trade deal due to be signed later this week.
Chinese Vice Premier Liu He is scheduled to visit Washington to sign the deal, which is said to include reduced tariffs on Chinese goods in exchange for increased Chinese purchases of U.S. agricultural products.
In an interview with Fox News on Sunday, Treasury Secretary Steven Mnuchin said the agreement calls for China to purchase $40 to $50 billion worth of U.S. agricultural products annually.
Mnuchin described the agreement as “very, very extensive,” although the deal will not completely resolve the trade dispute between the U.S. and China.
Stocks saw further upside after various media reports said the Treasury Department plans to drop its designation of China as a “currency manipulator” ahead of the signing of the deal.
A report from the Wall Street Journal said the trade agreement will include a section on Chinese currency practices that addresses many of the concerns raised when the U.S. applied the manipulator designation last August.
The news drew criticism from Senate Minority Leader Chuck Schumer, D-N.Y., who accused President Donald Trump of caving to Chinese President Xi Jinping.