Investing.com - The Dow rallied Monday after U.S. President Donald Trump and Chinese President Xi Jinping agreed to a 90-day trade war truce, prompting a wave of buying on Wall Street.
The Dow Jones Industrial Average rose 1.13%. The S&P 500 added 1.09%, while the Nasdaq Composite gained 1.51%.
Chip stocks, which have been weighed down by the months-long U.S.-Sino standoff, given their large exposure to China, helped lift tech stocks. Nvidia (NASDAQ:NVDA) rose more than 4% and Advanced Micro Devices (NASDAQ:AMD) gained 11%.
The truce eased the threat of tariffs on Apple (NASDAQ:AAPL), sending the iPhone maker's shares more than 3% higher, adding further steel to the rally in tech. The Wall Street Journal raised fears last week that Apple could face trade headwinds after reporting that Trump suggested he could introduce a 10% tariff on iPhones and laptops imported from China.
The de-escalation in trade tensions was met with skepticism from some on Wall Street who suggested the truce failed to resolve the most important structural trade issues between the two countries.
Goldman Sachs said that while the result showed "the willingness of the two sides to reach a deal," finding a "mutually agreeable compromise" that would lead to a comprehensive rollback of tariffs "will be challenging."
Still trade-sensitive sectors were bid as industrials gained, led by a rise in shares of Boeing (NYSE:BA) and Caterpillar (NYSE:CAT), trade bellwethers given their large international exposure.
Autos were also in favor after China said late Sunday it would reduce and remove its 40% tariff on cars coming into China from the United States. While it is not yet clear to what level the tariff on imported U.S. cars would fall, Fiat Chrysler (NYSE:FCAU), Ford Motor (NYSE:F) and General Motors (NYSE:GM) ended the day higher.
Fiat Chrysler was also bolstered by data showing November sales topped expectations.
Energy stocks surged, meanwhile, as oil prices rose 4% after Canada's Alberta province pledged to cut 325,000 barrels per day to tackle a build-up in supplies owing to a pipeline bottleneck.
In corporate news, casino stocks rallied after Macau gaming revenue growth was higher-than-expected in November. Wynn Resorts (NASDAQ:WYNN) and Las Vegas Sands (NYSE:LVS) ended the day sharply higher.
On the economic front, ISM manufacturing data for November topped economists expectations, while construction spending data fell short.
Top S&P 500 Gainers and Losers Today:
Advanced Micro Devices (NASDAQ:AMD), Wynn Resorts (NASDAQ:WYNN) and Incyte (NASDAQ:INCY) were among the top S&P 500 gainers for the session.
Discovery (NASDAQ:DISCA), Take-Two Interactive Software (NASDAQ:TTWO) and HollyFrontier (NYSE:HFC) were among the worst S&P 500 performers of the session.