Stocks charge higher on trade progress and signs of government stimulus

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• Stocks charge higher on Monday after the Trump administration said it had begun planning a new round of trade negotiations with China.
• Stocks also got a boost on signs of economic stimulus from Germany, which stoked hopes that other nations would do the same.
• The US is also expected to extend some exemptions for its ban on Huawei, further soothing concerns of a prolonged trade war between the US and China.
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Stocks climbed on Monday as investors speculated central banks around the world would step in to bolster growth in struggling economies. Meanwhile, the Trump administration indicated new progress in trade talks with China.

Trump's officials said they began preparing for another round of negotiations over the weekend, allaying some fears that the two countries would remain in a protracted trade war.

US Commerce Secretary Wilbur Ross said the US will extend exemptions on the Huawei ban for an additional 90 days. The exemptions were put in place to help US companies that rely on Huawei for telecommunications equipment. The move was seen as a positive step toward a trade deal as the Chinese tech giant has been thrust in the middle of the spat between the US and China over the last year.

Investors also found comfort in news that Germany's central bank was prepared to allocate up to $55 billion to fight a recession in the country. The bank warned the country's economy, which is the largest in Europe, could shrink for a second-consecutive quarter.

Jerome Powell, the chair of the US Federal Reserve, might also signal further rate cuts in 2019 in a speech later this week. Markets shook-off the president's tweet on Monday attacking Powell and the Fed for "horrendous lack of vision," regarding the economy.

Here's a look at the major indexes as of the 4 p.m. close on Monday:

• The S&P 500 climbed 1.21%, to 2,923.65.
• The Dow Jones Industrial Average rose 0.96%, to 26,135.79.
• The Nasdaq Composite jumped 1.35%, to 8,002.81.

Shares of Nvidia swelled as much as 7% after Microsoft announced it planned to use the company's graphics technology in "Minecraft," one of the most popular video games in the world. The new graphics update will likely be one of the biggest upgrades to the game featuring most realistic lighting, shadows, and reflections.

Estee Lauder jumped as much as 13% after posting better-than-expected earnings results for the second quarter. The cosmetics company also raised its sales outlook for 2020 following the strong quarter.

Within the S&P 500, these were the largest gainers:

• Estee Lauder: 12.5%
• Nvidia: 7.0%
• Wynn Resorts: 6.5%

And the largest decliners:

• Alliance Data Systems: (-1.6%)
• Davita: (-1.5%)
• General Electric: (-1.4%)

Every sector within the S&P 500 gained on Monday, with energy stocks rising more than 2%. Communications and technology stocks climbed more than 1.5%.