The Dow Jones industrial average surged nearly 670 points, erasing nearly half the ground it lost last week and marking the biggest gain since August 2015.
The broad gains Monday were led by technology stocks and banks, which took some of the biggest losses last week as trade tensions flared between the U.S. and China.
Investors were encouraged by signs Washington and Beijing are open to negotiating on trade.
Microsoft jumped 7.6 percent and Bank of America climbed 4.4 percent.
The Dow rose 669 points, or 2.8 percent, to 24,202.
The S&P 500 climbed 70 points, or 2.7 percent, to 2,658. The Nasdaq climbed 227 points, or 3.3 percent, to 7,220.
Bond prices fell. The yield on the 10-year Treasury note rose to 2.84 percent.Â
NEW: Dow Jones up nearly 700 points at closing bell after reports of easing trade tensions between U.S., China https://t.co/yHZzHw1etF pic.twitter.com/vo4G7uVEIG
— CBS News (@CBSNews) March 26, 2018
On Friday, Beijing released a $3 billion list of U.S. goods targeted for possible retaliation over an earlier U.S. tariff hike on steel and aluminum imports. That prompted fears the spat might depress trade worldwide and set back the global economic recovery.
China's government has since said it is open to negotiating with Washington following a news report indicating that U.S. officials have submitted a list of market-opening requests. A foreign ministry spokeswoman, Hua Chunying, didn't confirm the report by The Wall Street Journal but said at a regular briefing, "Our door for dialogue and discussion is always open."
The Journal said U.S. Treasury Secretary Steven Mnuchin and China's economic czar, Vice Premier Liu He, were leading negotiations. It said American market-opening requests as a possible condition of a settlement covered the auto, finance and semiconductor industries.
(The Associated Press, CBS News contributed to this report.
