S&P 500 sets record intraday high as U.S.- China trade truce fuels buying

U.S. stocks surged at the start of trade Monday, with the S&P 500 setting a new intraday peak, after Washington and Beijing agreed to refrain from escalating their trade dispute, with trade-sensitive tech-related stocks leading the rally.

How are the benchmark indexes faring?

The Dow Jones Industrial Average DJIA, +0.89% jumped 276 points, or 1.1%, to 26,882 and the S&P 500 index SPX, +1.00% rose 35 points, or 1.2%, to 2,977. The Nasdaq Composite COMP, +1.45%  surged 138 points, or 1.7%, to 7,830.75.

On Friday, the Dow added 207.06 points, or 0.8%, to 25,532.05. The S&P 500 rose 22.54 points, or 0.8%, to 2,834.41. The Nasdaq Composite Index gained 87.47 points, or 1.1%, to 7,734.49.

The gains come after the Dow logged its best June since 1938 and the S&P 500 rang up its best June since 1955.

What’s driving the market?

After meeting China’s President Xi Jinping on Saturday at the G-20 leaders summit in Japan, President Donald Trump said the U.S. would maintain current tariffs but hold off on new ones. Trump also said he would ease up on a ban on Huawei, allowing U.S. companies to sell their products to the China tech group, though the company will remain on a trade blacklist.

Trump said talks went “even better than expected” and that “we’re going to work with China where we left off.”

I had a great meeting with President Xi of China yesterday, far better than expected. I agreed not to increase the already existing Tariffs that we charge China while we continue to negotiate. China has agreed that, during the negotiation, they will begin purchasing large…..

— Donald J. Trump (@realDonaldTrump) June 29, 2019

Stephen Innes, managing partner at Vanguard Markets wrote in a Sunday note that, “After the markets were stuck

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