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U.S. stocks rallied Monday as investors welcomed signs of potential progress on two major concerns weighing on markets: the prolonged government shutdown and escalating trade tensions with China.
The Dow Jones Industrial Average climbed 515.97 points, or 1.12%, to finish at 46,706.58. The tech-heavy Nasdaq Composite jumped 310.57 points, or 1.37%, closing at 22,990.54, while the S&P 500 gained 71.12 points, or 1.07%, ending the session at 6,735.13.
The VIX, Wall Street's so-called fear gauge that measures expected market volatility, dropped 12.27% to 18.23, reflecting increased investor confidence.
President Donald Trump sparked the rally with comments suggesting diplomatic momentum with Beijing following trade disputes that roiled markets in recent days. Speaking to reporters at the White House, Trump announced upcoming discussions with Chinese President Xi Jinping.
"We're going to be meeting in South Korea in a couple of weeks, and we'll see what we can do," Trump said, expressing optimism about the talks. "I believe after we leave South Korea ... we're going to have a very good relationship with China."
Trump said he expects to reach a "fair deal" with Beijing and indicated the leaders would address multiple issues, though he did not elaborate on specifics.
Markets also reacted positively to comments from Kevin Hassett, head of the White House National Economic Council, who told CNBC that the government shutdown is "likely to end sometime this week." The partial shutdown has now stretched to 20 days, disrupting the release of key economic data.
Hassett cautioned that if an agreement isn't reached soon, the Trump administration may implement "stronger measures" to compel Democratic cooperation.
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With the shutdown delaying routine economic reports, investors are now focusing on Friday's inflation data ahead of next week's Federal Reserve meeting.
Apple shares provided additional lift to the market, closing at a record high with a 3.94% gain following strong iPhone 17 sales figures from the U.S. and China markets.
Wall Street's attention this week turns to a packed earnings calendar, with major corporations including Tesla, Ford, Netflix, Procter & Gamble, Coca-Cola, IBM and Intel scheduled to report quarterly results.
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