US stocks rebounded on Monday (17 April) to close near session highs, as concerns over geopolitical tensions eased and banks rallied.
The Dow Jones Industrial Average advanced 183.67 points, or 0.9%, to settle at 20,636.92. Boeing Co, JP Morgan Chase & Co and Nike Inc were the leading advancers, according to MarketWatch.
The S&P 500 rose 20.06 points, or 0.9%, to close at 2,349.01, with all 11 sectors trading higher. The financials, real estate and industrial sectors led gains. The Financial Select Sector SPDR ETF, which track's the index's financials, gained 1.8% to post its best daily rise since 1 March, FactSet data revealed.
Meanwhile, the Nasdaq Composite jumped 51.64 points, or 0.9%, to end at 5,856.79. Significant gains were made by Nvidia Corp and Amazon.com Inc, which rose 4% and 2%, respectively.
"I think this is a relief rally," Peter Cardillo, chief market economist at First Standard Financial, told CNBC. "Are out of the woods? No. I still think we're in the midst of a pullback" given the geopolitical situation, he said.
Monday's rally comes after a particularly tense weekend between the US and North Korea, with concerns about aggressions escalating coming to a head. North Korea held its annual display of force, parading its military, missiles and rocket launchers ahead of a failed missile launch.
The weekend also included an unannounced visit to the Korean Peninsula's demilitarized zone by US Vice President Mike Pence, who warned Pyongyang "not to test" the resolve of Trump.
"The fact that Pence was able to go there and come out unharmed led some bulls back into the market," Adam Sarhan, CEO of 50 Park Investments, said to CNBC. "This is a combination of relief in financial markets and the geopolitical front."
Investors have remained cautious amid the geopolitical tensions, as well as concerns about Trump's ability to move ahead with his tax plans.
According to CNBC, US stocks rallied on Monday after Treasury Secretary Steven Mnuchin told the Financial Times that Republicans could complete tax reform without including the border adjustment tax. Mnuchin added that a tax reform plan on President Donald Trump's desk before August was "highly aggressive to not realistic at this point".
Gold prices rose 0.3% at $1,291.90 an ounce, while crude oil prices declined 1% to $52.65 a barrel. MarketWatch reported oil prices declined following data released Thursday (13 April) showed the 13th weekly rise in a row in the number of active US oil rigs.
Treasury's benchmark 10-year yield dropped to its lowest level since 17 November before rallying to trade around 2.23%, CNBC reported. The dollar dropped 0.2% against a basket of currencies.