The three main U.S. indexes soared on Monday as investors and analysts continued to focus on news revolving around the U.S. and China trade agreements, according to MarketWatch. The upbeat Monday was also accelerated by the number of acquisitions and mergers announced early this morning.
On late Monday afternoon, the Dow Jones advanced by 129.81 points or 0.47%. The S&P 500 gained 18.85 points or 0.61%, while the Nasdaq Composite popped 100.87 points or 1.18%.
Reuters reported on Saturday that Robert O’Brien, U.S. National Security Adviser, told reporters at a security conference that a “phase one” deal between the U.S. and China could possibly happen by the end of the year.
O’Brien also mentioned that the U.S. would not “turn a blind eye to what’s happening in Hong Kong or what’s happening in the South China Sea, or other areas of the world where we’re concerned about China’s activity.”
Additionally, the Chinese government on Sunday released a document calling for more protection of intellectual property rights, contributing to the bullish market on Monday, according to MarketWatch.
“The Chinese government have typically offered to purchase more agricultural goods from the U.S., but that will only gain a limited amount of traction with the Trump administration, but genuine progress regarding IP could help get phase one wrapped up,” said David Madden, Market Analyst at CMC, in a note.
Meanwhile, Hong Kong’s Hang Seng index surged by 397.96 points or 1.5%, marking the three consecutive day of gains. The market was boosted after the pro-democracy opposition recorded a victory in the weekend elections, winning a majority in the vote for 452 district council seats.
While the district council have little power, it could put pressure on the government to negotiate with protests demanding a democratic election for the city’s legislature and chief executive.
U.S. markets were boosted by major mergers and acquisitions on Monday. Charles Schwab (NYSE: SCHW) agreed its deal for TD Ameritrade (NASDAQ: AMTD). Luxury brand conglomerate agreed to acquire Tiffany & Co. (NYSE: TIF), while Novartis (NYSE: NVS) acquired The Medicines Company (NASDAQ: MDCO).