By Saqib Iqbal Ahmed
Growing bets the Federal Reserve will halt its multi-year rate-hike cycle sent the dollar lower across the board, while rising equity markets and support from OPEC production cuts helped lift oil prices.
MSCI's world equity index <.MIWD00000PUS>, which tracks shares in 47 countries, rose 0.88 percent, its highest level since Dec. 19.
The resumption of U.S.-China trade talks helped eased concerns On Wall Street about the fallout from an extended trade war between the world's two largest economies. Technology and consumer discretionary shares led gains.
U.S. officials are meeting their counterparts in Beijing this week for the first face-to-face talks since U.S. President Donald Trump and Chinese President Xi Jinping agreed in December to a 90-day truce in a trade war that has roiled global markets.
"The main thing is the administration's implied progress on talks with China. That's something that the market sees as very important," said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.
The Dow Jones Industrial Average <.DJI> rose 98.19 points, or 0.42 percent, to close at 23,531.35, the S&P 500 <.SPX> gained 17.75 points, or 0.70 percent, to finish at 2,549.69 and the Nasdaq Composite <.IXIC> added 84.61 points, or 1.26 percent, to end at 6,823.47.
The gains extended Friday's rise following robust U.S. employment data and a message from the Federal Reserve that it would be patient and flexible in policy decisions this year.
On Friday, Fed Chairman Jerome Powell told the American Economic Association that the U.S. central bank is not on a preset path of interest rate hikes and that it will be sensitive to the downside risks markets are pricing in.
In currency markets, the dollar index <.DXY>, which tracks the greenback versus the euro, yen, sterling and three other currencies, was down 0.49 percent at 95.709 amid the diminished expectations for further U.S. rate hikes.
Gold rose and palladium hit a record high as the weaker dollar spurred demand for the metals from holders of other currencies. Spot gold
U.S. Treasury prices fell on Monday, extending losses from Friday, as investors evaluated the likelihood of further Federal Reserve rate hikes this year and as the United States and China resumed trade talks.
Benchmark 10-year notes
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)