Stocks Opened Higher on Trade Deal Optimism

U.S. stocks opened higher on Monday as ongoing optimism over trade deals helped push risk assets higher. The Dow Jones Industrial Average lately rose 142.18 points, or 0.51%, to 28,277.56. The S&P 500 climbed 21.22 points, or 0.67%, to 3,190.02. The Nasdaq Composite advanced 70.71 points, or 0.81%, to 8,805.59.

Oil futures traded flat to slightly higher Monday, finding support after the U.S. and China reached a so-called phase one agreement on trade. West Texas Intermediate crude for January delivery was unchanged at $60.07 a barrel, while February Brent crude gained 19 cents, or 0.3%, to trade at $65.41 a barrel.

Officials from the U.S. and China on Friday each confirmed that they had agreed on terms of a phase one trade agreement. The agreement will include the U.S. reducing the tariff rate on $120 billion worth of Chinese imports to 7.5% from 15% previously, while maintaining an existing 25% tariff on another about $250 billion in Chinese imports.