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Stocks closed higher on Monday, resuming the rally that started last week amid news the U.S. will remove China from a list of currency manipulating countries, increasing optimism ahead of the signing of a key trade agreement.
The Dow Jones Industrials picked up 83.28 points to 28,907.05
The S&P 500 increased 22.78 points to 3,288.13, hitting a record high.
The NASDAQ soared 95.07 points to 9,273.93, also an all-time high, led by Tesla shares.
Investors also looked ahead to the start of the corporate earnings season. Citigroup and J.P. Morgan Chase are among the companies set to report earnings. Expectations for the earnings season are low, however.
S&P 500 earnings are expected to have declined by 2% in the fourth quarter. If that estimate holds true, it would mark the fourth straight quarter of declining earnings.
Tesla shares rose 8.5% after an analyst at Oppenheimer hiked his price target on the stock to $612 per share from $385 per share. The analyst said Tesla’s "risk tolerance ... and larger ambition than peers are beginning to pose an existential threat to transportation companies that are unable or unwilling to innovate at a faster pace." The stock broke above $500.00 for the first time ever.
Goldman Sachs and Cisco Systems rose more than 1% each to lead the Dow higher. The S&P 500 was lifted by the tech and real estate and materials sectors, which advanced at least 1.3% each. Apple shares also rose 2.1% to hit a record high.
The decision to take China out of the currency manipulator list comes more than five months after the country was added to it.
Prices for the 10-Year U.S. Treasury faded a bit, raising yields to 1.84% from Friday’s 1.82%. Treasury prices and yields move in opposite directions.
Oil prices tailed off 98 cents to $58.06 U.S. a barrel.
Gold prices fell 11 dollars to $1,549.10 U.S. an ounce.
