US stocks closed higher on the first trading day of the week after President Donald Trump announced a new trade deal with India and economic data pointed to manufacturing sector expansion.
The Dow Jones Industrial Average was up 1.05%, or 515.19 points, closing Monday at 49,407.66.
The Nasdaq climbed 0.56%, or 130.29 points, to 23,592.11, while the S&P 500 added 0.54%, or 37.41 points, to reach 6,976.44.
The Volatility Index (VIX), also known as the "fear index," fell 6.31% to 16.34.
Stock markets turned green after Trump announced a new trade deal with India on Monday that will lower US reciprocal tariffs from 25% to 18%, saying the agreement will expand bilateral trade and strengthen ties.
Saying that they have discussed a variety of topics from trade to ending the war in Ukraine, Trump said Indian Prime Minister Narendra Modi "agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela."
Trump noted that India will "move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO," adding Modi is committed to "BUY AMERICAN," including "over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products."
On the macroeconomic side, data from the manufacturing purchasing managers' index (PMI) showed Monday that the US sector grew for the first time in a year last month, rising to 52.6%, up 4.7 percentage points from 47.9% in December.
Technology stocks stood out, with Alphabet, Amazon, and AMD gaining 1.9%, 1.5%, and 4% respectively, as their earnings reports are due this week.
Meanwhile, shares of chip giant Nvidia fell 2.9% following news that the company had halted plans to invest up to $100 billion in OpenAI.
Additionally, the Bureau of Labor Statistics (BLS) said the January nonfarm payrolls report would not be released as scheduled on Friday due to the ongoing partial federal government shutdown.
The bureau also said that the JOLTS job openings report for December would not be published, and that it would resume normal operations and announce changes to its data schedule when the government reopens.
