Stocks hit record highs on Monday and were on pace for its fourth straight gain as a so-called phase one trade deal between China and the U.S. clears the path higher for stocks to end a banner year.
The Dow Jones Industrials leaped 180.33 points, to start the last full week before Christmas at 28.315.71
The S&P 500 gained 25.38 points from Friday’s record close to 3,194.18
The NASDAQ advanced 85.32 points, or 1%, from Friday’s all-time high to 8,820.47
Tech was the best-performing sector in the S&P 500, rising nearly 1% as Micron Technology traded 3.2% higher. Goldman Sachs propelled the Dow to an all-time high, rising 2.1%.
Monday’s gains were kept in check by a 4% drop in Boeing. Shares of the aerospace giant fell after The Wall Street Journal reported Sunday the company was nearing a decision on possibly halting or cutting production of the 737 Max.
The report follows Federal Aviation Administration chief Steve Dickson telling the media last week the 737 Max jet’s return was unlikely to be cleared until 2020.
On the economic calendar, IHS Markit services, manufacturing, and composite PMI (purchasing managers’ index) flash data for December were due Monday.
Sentiment was also lifted by strong economic data out of China. Chinese industrial production rose 6.2% in November on a year-over-year basis, topping expectations. Retail sales in China also jumped 8% last month.
The U.S. and China announced Friday they will move forward with a so-called phase one trade deal. As part of the agreement, the U.S. will roll back some levies on Chinese products and China will increase its purchases of U.S. agricultural products. Treasury Secretary Steven Mnuchin said will be inked in January.
Prices for the 10-Year U.S. Treasury gained, sharply lowering yields to 1.87% from Friday’s 1.82%. Treasury prices and yields move in opposite directions.
Oil prices added seven cents to $60.14 U.S. a barrel.
Gold prices moved higher $2.10 at $1,483.30 U.S. an ounce.