Investing.com - The Dow surged more than 400 points amid trade optimism as the U.S. and China agreed to a temporary trade war ceasefire.
The S&P 500 rose 38 points, or 1.37%, to 2,799.40 as of 9:32 AM ET (14:32 GMT), while the Dow Jones Industrial Average increased 409 points, or 1.60%, to 25,948.15 and the tech-heavy Nasdaq Composite jumped 133 points, or 1.82%, to 7,464.67.
U.S. President Donald Trump and Chinese President Xi Jinping agreed at the G20 summit to hold off on increasing tariffs as the two continue trade talks.
Trump agreed to not raise tariffs on more than $200 billion of Chinese goods from 10% to 25%, while Xi agreed to buy more American goods. The White House said it will increase the tariffs if no deal is reached in 90 days.
"Most of us were hoping that we would come out of these discussions with no new tariffs and a pause, which is ultimately what we got," said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.
The trade truce helped lift technology stocks, with Apple (NASDAQ:AAPL) up 2.21%, Amazon.com (NASDAQ:AMZN) gaining 4% and Facebook (NASDAQ:FB) rising 1.17%.
Tesla (NASDAQ:TSLA) rose 2.58% amid news that it is expanding its electric charging routes in Canada, while Boeing (NYSE:BA) jumped 5.87% and General Electric (NYSE:GE) was up 4.19%.
Automakers were also higher after Trump said that China had agreed to cut tariffs on American cars.
Elsewhere, Coca-Cola (NYSE:KO) dipped 1.85%.
In commodities, gold futures rose 1.10% to $1,239.50 a troy ounce and crude oil surged 4.16% to $53.05 a barrel. The U.S. dollar index, which measures the greenback against a basket of six major currencies, lost 0.29% to 96.92.
-- Reuters contributed to this report.