The market, which sold off initially following news of Trump's trade plan, got a nice boost from news that the US and China were willing to negotiate tariffs, with the hope of avoiding a full-blown trade war.
Other Trump administration spokesmen headed to the airwaves Monday to calm markets tout the administration's efforts to rework trade deals with China and with the United States' North American trading partners Mexico and Canada. "I'm cautiously hopeful we reach an agreement". The Russell 2000 index of smaller-company stocks picked up 33.63 points, or 2.2 percent, to 1,543.72.
USA stocks tumbled on both on Thursday and on Friday last week after President Donald Trump unveiled tariffs on up to $60bn of Chinese imports and vowed to counter China's alleged "theft" of American intellectual property.
The S&P 500 gained 0.12% at 2,661.81 and the Nasdaq Composite rose 0.24%, at 7,238.02.
"It looks like we might get a really good deal on NAFTA", Navarro said.
Some markets in Asia rose after news the United States agreed to excuse South Korea from steel levies and European stocks continued to drop due to trade war fears.
The surge in stocks dragged on the Treasury market, which faces a record US$294 billion of new supply this week.
The Dow Jones industrial average plummeted in the final hours of a bouncy day Friday and closed down 424 points, 1.77 percent. Bank of America added $1.27, or 4.4 percent, to $30.44. The Dow shed 1,100 points in the last two trading days of last week.
Facebook's gains were a comparatively tepid 0.4% after the Federal Trade Commission confirmed news reports from last week that it had opened an inquiry over the harvesting of Facebook data on tens of millions of the social network's users by the British consulting group Cambridge Analytica. "Policy markers understand that the best and fastest way to harm their constituents is to start a trade war and deny voters low-priced goods produced from around the world while tanking global financial markets". A 10 percent decline from its high earlier this year is considered a correction.
Of the 11 major sectors of the S&P 500 only defensive plays such as consumer staples, telecom, real estate and utilities ended the session in positive territory.
The US tariffs on steel and aluminium imports came into effect last week.
"It's more of a follow through that we had from late last week, when we had the sell-off last Thursday and then more follow-through pressure on Friday".