At 10:24 a.m. ET, the Dow Jones Industrial Average .DJI rose 241.25 points, or 0.47%, to 51,923.89, the S&P 500 .SPX gained 70.38 points, or 0.92%, to 7,720.88, and the Nasdaq Composite .IXIC added 393.21 points, or 1.48%, to 26,915.76.
Seven of the 11 S&P 500 sectors were trading higher. Communication services .SPLRCL was in the lead with a 2.3% rise, while energy .SPNY led declines.
A diplomatic breakthrough between the United States and Denmark over the weekend over the status of Greenland also aided sentiment and was likely to allay trade tensions between the countries.
US-listed shares of companies exposed to Greenland rose. Critical Metals CRML.O soared 35%, while Greenland Mines GRML.O and Greenland Energy GLND.O each more than doubled in value.
The China-US summit on Thursday could touch upon topics including potentially extending the trade truce between the two superpowers, the Iran war, as well as regulation on AI advances.
Scott Bessent and Chinese Vice Premier He Lifeng concluded talks on Sunday during which the US Treasury secretary proposed a new mechanism for AI safety notifications.
Bitcoin BTC=, a key marker for risk appetite, rose 5.3% to hit a more than seven-month high, lifting Coinbase COIN.O and Strategy MSTR.O 5% and 8%, respectively.
Paramount Skydance PSKY.O gained 6.5% after a report said the company reached a settlement with California and other states suing to block its $110 billion merger with Warner Bros Discovery WBD.O.
Advancing issues outnumbered decliners by a 1.61-to-1 ratio on the NYSE and by a 1.78-to-1 ratio on the Nasdaq.
The S&P 500 posted 4 new 52-week highs and 22 new lows, while the Nasdaq Composite recorded 30 new highs and 66 new lows.
Wall Street rises as AI stocks rebound
Wall Street's main indexes rose on Monday, powered by AI gains as Treasury yields eased and crude prices tumbled more than 3% to hit an 11-day low on hope of progress in Middle East negotiations during the UN meeting this week.
Doomsday warnings from the leaders of AI giants a week ago had led to a selloff, but the mood seemed lighter as investors focused on signs that spending on developing the technology was still expanding.
Chip companies such as Intel INTC.O rose 9%. Advanced Micro Devices AMD.O surged 8.5% to become the latest chipmaker to reach $1 trillion in market valuation and Micron MU.O also gained 3%.
Meta META.O soared 6.2% to a more than seven-month high after brokerage Wells Fargo hiked its price target on the stock, while Accenture ACN.N gained 3.5% after partnering with Anthropic to invest $2 billion in AI evaluation.
Oil prices, yields and rate expectations shape sentiment
A fall in oil prices eased the pressure on equities as the 10-year US bond yield US10YT=RR slipped below the critical 5% mark.
Still, investors were wary of the interest-rate outlook after a recent pickup in inflation prompted the US Federal Reserve to raise rates for the first time in three years. Markets see a 50% chance of another hike next month, CME's FedWatch showed.
Commentary from at least 10 central bank policymakers is due this week.
Chicago Fed President Austan Goolsbee said there was "no ambiguity" about the need for higher interest rates, with inflation pressures now moving beyond tariffs and energy prices to strong demand.
SPY•
