US stocks trade higher amid new NAFTA pact

US stocks traded on an upbeat note on Monday after Canada and the US on Sunday night announced that they and Mexico have reached a new deal to replace the North American Free Trade Agreement (NAFTA).

The Dow Jones Industrial Average surged 251.41 points, or 0.95 per cent, to 26,709.72. The S&P 500 was up 18.52 points, or 0.64 per cent, to 2,932.50, Xinhua news agency reported.

The Nasdaq Composite Index climbed 31.09 points, or 0.39 per cent, to 8,077.44.

The Dow's gains were led by Boeing stock. Shares of the company rallied 2.34 per cent around midday. Apple also gained, with its shares climbing more than 1 per cent.

Eight of the 11 primary S&P 500 traded higher, with energy and materials up more than 1 per cent, leading the advancers. Tech sector rose 0.73 per cent, underpinning the Nasdaq.

Canada and the US reached an agreement, alongside Mexico a new free trade deal, called the US-Mexico-Canada Agreement (USMCA), according to a joint statement from the US and Canada on Sunday. The USMCA will replace the 24-year-old NAFTA.

Market sentiment was bolstered as investors expected the new accord would help remove an uncertainty, strategists noted.

--IANS

pgh/