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/
