Stocks moved higher in morning trading on Wall Street Monday after the U.S. and China agreed to a 90-day truce in their escalating trade dispute.

Technology companies led the rally, which followed gains in overseas markets as investors welcomed news of the temporary stand-down, which was agreed to over dinner between President Donald Trump and his Chinese counterpart Xi Jinping at the G-20 summit over the weekend.

The long-running dispute between the world’s two largest economies has rattled investors for months, stoking traders’ fears that it could begin dragging down corporate profits and weighing on global economic growth.

Specialist Thomas McArdle, left, and trader Jeffrey Vazquez work on the floor of the New York Stock Exchange, Monday, Dec. 3, 2018. Stocks are opening sharply higher on Wall Street, following gains in overseas markets after the U.S. and China struck a 90-day truce in their trade dispute. (AP Photo/Richard Drew)
Specialist Thomas McArdle, left, and trader Jeffrey Vazquez work on the floor of the New York Stock Exchange, Monday, Dec. 3, 2018. Stocks are opening sharply higher on Wall Street, following gains in overseas markets after the U.S. and China struck a 90-day truce in their trade dispute. (AP Photo/Richard Drew)

The development helped extend a swift turnaround for the market, which notched its biggest weekly gain in nearly seven years last week after Fed Chairman Jerome Powell indicated the central bank might consider a pause in rate hikes next year while it gauges the impact of its credit tightening program.

Technology stocks, industrial companies and banks accounted for much of the market’s gains Monday, offsetting losses in household goods makers and utilities. Energy stocks also rose as U.S. crude oil prices rose sharply.

The S&P 500 index climbed 22 points, or 0.8 percent, to 2,782 as of 11:25 a.m. Eastern Time. The benchmark index vaulted a 4.9 percent gain last week. The Dow Jones Industrial Average jumped 214 points, or 0.8 percent, to 25,752. The average was up as much as 441 points earlier.

Trader Michael Milano, right, works on the floor of the New York Stock Exchange, Monday, Dec. 3, 2018. Stocks are opening sharply higher on Wall Street, following gains in overseas markets after the U.S. and China struck a 90-day truce in their trade dispute. (AP Photo/Richard Drew)
Trader Michael Milano, right, works on the floor of the New York Stock Exchange, Monday, Dec. 3, 2018. Stocks are opening sharply higher on Wall Street, following gains in overseas markets after the U.S. and China struck a 90-day truce in their trade dispute. (AP Photo/Richard Drew)

The Nasdaq composite rose 96 points, or 1.3 percent, to 7,426. The Russell 2000 index of smaller-company stocks picked up 3 points, or 0.2 percent, to 1,536.

Markets in Europe also climbed. Germany’s DAX gained 1.9 percent, while France’s CAC 40 rose 1 percent. Britain’s FTSE 100 added 1.2 percent.

Traders Peter Tuchman, left, and Sal Suarino work on the floor of the New York Stock Exchange, Monday, Dec. 3, 2018. Stocks are opening sharply higher on Wall Street, following gains in overseas markets after the U.S. and China struck a 90-day truce in their trade dispute. (AP Photo/Richard Drew)
Traders Peter Tuchman, left, and Sal Suarino work on the floor of the New York Stock Exchange, Monday, Dec. 3, 2018. Stocks are opening sharply higher on Wall Street, following gains in overseas markets after the U.S. and China struck a 90-day truce in their trade dispute. (AP Photo/Richard Drew)

After a steep decline in October, stocks steadied in early November. But the selling picked up again as investors abandoned high-flying technology stocks amid concerns over the U.S.-China trade tussle and slowing global economic growth and bailed on energy stocks as the price of oil plummeted.

Presidents Trump and Xi of China met at the G-20 summit over the weekend and agreed to a cease-fire, lasting for at least 90 days, to allow time to smooth out a dispute over Chinese technology policies that the U.S. and other trading partners consider predatory.

Trump agreed to hold off on plans to raise tariffs on $200 billion in Chinese goods, which were supposed to kick in on Jan. 1. In return, Xi agreed to buy a “very substantial amount” of agricultural, energy and industrial products from the U.S. to reduce its large trade deficit with China, the White House said.

Trader Dudley Devine works on the floor of the New York Stock Exchange, Monday, Dec. 3, 2018. Stocks are opening sharply higher on Wall Street, following gains in overseas markets after the U.S. and China struck a 90-day truce in their trade dispute. (AP Photo/Richard Drew)
Trader Dudley Devine works on the floor of the New York Stock Exchange, Monday, Dec. 3, 2018. Stocks are opening sharply higher on Wall Street, following gains in overseas markets after the U.S. and China struck a 90-day truce in their trade dispute. (AP Photo/Richard Drew)

The U.S. had announced tariffs on $250 billion in Chinese imports this year, with the tax rate on many products set to rise Jan. 1, while China put new taxes on $110 billion in U.S. goods.

While the truce has the potential to steady markets through the end of the year, the countries still need to hammer out a lasting trade deal.

Trader Gregory Rowe works on the floor of the New York Stock Exchange, Monday, Dec. 3, 2018. Stocks are opening sharply higher on Wall Street, following gains in overseas markets after the U.S. and China struck a 90-day truce in their trade dispute. (AP Photo/Richard Drew)
Trader Gregory Rowe works on the floor of the New York Stock Exchange, Monday, Dec. 3, 2018. Stocks are opening sharply higher on Wall Street, following gains in overseas markets after the U.S. and China struck a 90-day truce in their trade dispute. (AP Photo/Richard Drew)

“Three months is not a very long time to achieve this so there are naturally plenty of sceptics out there but this is a rare piece of good news in a conflict that has yet to produce any,” said Craig Erlam, senior market analyst at OANDA.

The trade truce was one of several factors helping push oil prices higher Monday. Crude prices also jumped on news that Qatar will withdraw from OPEC in January. The move, which marks the first time a Mideast nation has exited the cartel since its founding in 1960, came ahead of an OPEC meeting on Thursday.

In addition, the government of the Canadian province of Alberta announced a large cut in oil production Monday.

Specialists James Denaro, center, and Matthew Greiner work on the floor of the New York Stock Exchange, Monday, Dec. 3, 2018. Stocks are opening sharply higher on Wall Street, following gains in overseas markets after the U.S. and China struck a 90-day truce in their trade dispute. (AP Photo/Richard Drew)
Specialists James Denaro, center, and Matthew Greiner work on the floor of the New York Stock Exchange, Monday, Dec. 3, 2018. Stocks are opening sharply higher on Wall Street, following gains in overseas markets after the U.S. and China struck a 90-day truce in their trade dispute. (AP Photo/Richard Drew)

“We expect OPEC to follow suit and agree to a production cut in Vienna this coming Thursday,” analysts with Goldman Sachs wrote in a published note Monday.

Benchmark U.S. crude was up 3.2 percent to $52.55 per barrel in New York. Brent crude, the international standard, rose 3 percent to $61.21 per barrel in London.

Traders on the floor of the New York Stock Exchange pause for a moment of silence to honor former President George H.W. Bush, Monday, Dec. 3, 2018. (AP Photo/Richard Drew)
Traders on the floor of the New York Stock Exchange pause for a moment of silence to honor former President George H.W. Bush, Monday, Dec. 3, 2018. (AP Photo/Richard Drew)

Oil prices had been falling in recent weeks as supplies built up, partly because the U.S. agreed to hold off on sanctions for countries that import oil from Iran. Traders have also been worried that a slowdown in global economic growth will reduce demand for fuels.

Monday’s pickup in oil prices gave energy stocks a boost. Devon Energy climbed 5.2 percent to $28.43.

Gains in technology companies helped drive the market higher. Chipmaker Advanced Micro Devices jumped 7.9 percent to $22.99.

Traders on the floor of the New York Stock Exchange, including Michael Smyth, center, pause for a moment of silence to honor former President George H.W. Bush, Monday, Dec. 3, 2018. (AP Photo/Richard Drew)
Traders on the floor of the New York Stock Exchange, including Michael Smyth, center, pause for a moment of silence to honor former President George H.W. Bush, Monday, Dec. 3, 2018. (AP Photo/Richard Drew)

Auto manufacturers also rose after Trump said on Twitter late Sunday that Beijing agreed to cut import duties on U.S. autos. There was no Chinese confirmation of the move, which would have little impact on trade because most American vehicles sold in China are made there.

Ford Motor rose 3.1 percent to $9.70, while General Motors added 2.2 percent to $38.77. Tesla gained 2.9 percent to $360.68.

Trader Robert Moran, center, works on the floor of the New York Stock Exchange, Monday, Dec. 3, 2018. Stocks are opening sharply higher on Wall Street, following gains in overseas markets after the U.S. and China struck a 90-day truce in their trade dispute. (AP Photo/Richard Drew)
Trader Robert Moran, center, works on the floor of the New York Stock Exchange, Monday, Dec. 3, 2018. Stocks are opening sharply higher on Wall Street, following gains in overseas markets after the U.S. and China struck a 90-day truce in their trade dispute. (AP Photo/Richard Drew)

Bond prices rose. The yield on the 10-year Treasury note fell to 3 percent from 3.01 percent late Friday.

The dollar fell to 113.58 yen from 113.61 yen late Friday. The euro strengthened to $1.1353 from $1.1309.

Major indexes in Asia finished higher. Hong Kong’s Hang Seng surged 2.6 percent, while Japan’s Nikkei 225 index climbed 1 percent. The Kospi in South Korea jumped 1.7 percent. The S&P ASX/200 in Australia added 1.8 percent. Shares rallied in Taiwan and throughout Southeast Asia.

Source: The Associated Press