Stocks jumped on Monday after President Donald Trump said China is ready to come back to the negotiating table following a phone call Sunday.
The Dow Jones Industrial Average catapulted 269.93 points, or 1.1%, to 25,898.83.
The S&P 500 jumped 31.27 points, or 1.1%, to 2,878.38
The NASDAQ spiked 101.93 points, or 1.3%, to 7,853.73.
For August, the major indexes are all down more than 3% as U.S.-China trade tensions rise.
Semiconductor stocks such as Micron improved 1.1%, and Advanced Micro Devices gained 2.5%. Apple led the Dow, rising 1.9%.
Speaking to reporters at the Group of Seven meeting in Biarritz in France Monday, Trump said the two countries would start talking very seriously.
The latest news on the U.S.-China trade front come after Trump said on Friday the U.S. will raise tariffs on $250 billion worth of Chinese goods to 30% from 25%. Tariffs on another $300 billion in Chinese products will also go up to 15% from 10%, he said. Stock futures initially fell overnight on Trump's comments before rebounding.
Prices for the benchmark 10-year U.S. Treasury faded slightly, raising yields to 1.54% from Friday's 1.53%. Treasury prices and yields move in opposite directions
Oil prices gave back 38 cents to $53.79 U.S. a barrel.
Gold prices took on 90 cents to $1,538.50 U.S. an ounce.