The Dow Jones Industrial Average on Monday jumped 281.75 points or 1.20 per cent to 24 996.84. The S&P 500 gained 17.65 points or 0.65 per cent to 2 730.62 Xinhua news agency reported.
The Nasdaq Composite Index rose 34.52 points or 0.47 per cent to 7 388.86.
China and the US issued a joint statement over the weekend vowing not to launch a trade war against each other.
US Treasury Secretary Steven Mnuchin said on Sunday that the US and China had reached a deal on a "very important" framework concerning their economic and trade ties and the two sides had agreed to put a possible trade war on hold.
He added that the two sides would continue with their communications on trade issues.
Analysts said easing US-China trade tensions would likely help chipmakers stocks the most.
On the economic front led by improvements in production-related indicators the Chicago Fed National Activity Index rose from 0.32 in March to 0.34 in April beating market consensus.
--IANS pgh/
