Stocks rose on Monday, extending last week’s big gains, after the U.S. reached an agreement with Mexico on tariffs, easing some of the trade concerns which have weighed on the market since early May.
The Dow Jones Industrial Average rose about 223 points, while the S&P 500 gained about 1%, less than 2% from its intraday all-time high hit on May 1. The Nasdaq Composite rose nearly 2%, led by Amazon.
President Donald Trump announced Sunday that proposed tariffs on Mexican imports would be suspended indefinitely. Trump said in a Twitter post that he has “full confidence” that Mexico will crack down on migration from Central America, after the two neighbors reached a consensus.
Shares of GM and Ford, two companies that had a lot to lose in a trade battle with Mexico because of their production there, jumped 1.8% and 2.6% respectively on Monday.