US close: Stocks close higher as US and China look to restart trade talks
US stocks closed higher on Monday after Donald Trump announced the US and China were "getting back to the table".
At the close, the Dow Jones Industrial Average was up 1.06% at 25,899.84, while the S&P 500 was ahead 1.11% at 2,878.60 and the Nasdaq Composite saw out the session 1.32% firmer at 7,853.74.
The Dow Jones closed 270.94 points stronger on Monday after Donald Trump told reporters at Monday's G-7 meeting in France that both countries were ready to start talking very seriously following a phone call between the two global superpowers a day earlier.
"China called last night our top trade people and said 'let's get back to the table' so we will be getting back to the table and I think they want to do something," said Trump.
"They have been hurt very badly but they understand this is the right thing to do and I have great respect for it. This is a very positive development for the world."
However, Global Times editor-in-chief Hu Xijin said in a tweet that negotiators from both countries had not talked over the phone: "The two sides have been keeping contact at technical level, it doesn't have significance that President Trump suggested. China didn't change its position. China won't cave to US pressure."
Treasury yields finished higher following the news, with the 10-year Treasury note yield rising 2.2 basis points to 1.545% after hitting its lowest level since 2016, while the 2-year note climbed 3 basis points to 1.558%.
On the corporate front, chipmakers like AMD and Micron closed higher following Trump's comments.
Elsewhere, Dish shares climbed after analysts at Raymond James upgraded the stock to 'strong buy', while Facebook shares closed higher despite ongoing concerns about its global cryptocurrency, Libra.
In data news, the Chicago Fed National Activity Index, a measure of economic activity in the States, dropped into negative territory last month as a result of production-related indicators.
For July, the index was -0.36, down from 0.03 reading turned in a month before. The Federal Reserve Bank of Chicago said all four broad categories that comprise the index contributed negatively in July.
Elsewhere, the Dallas Federal Reserve's Texas manufacturing outlook survey picked up steam in August, with the key production index hitting its highest level in almost twelve months.
The production index, a key measure of state manufacturing conditions, surged 9 points to 17.9.