U.S. stocks jumped on Monday morning as investors reacted to the progress between the U.S. and China at the G20 as well as the historic meeting between President Trump and North Korean's leader Kim Jong Un.
The S&P 500 hit an intraday high right at the open of the markets. Tech companies including semiconductor leaders are seeing early gains.
U.S. benchmark oil prices surge nearly 3 percent higher to levels not seen in five weeks on the possibility rising demand due to improving U.S.-China trade negotiations, and reduced global supply due to an OPEC plan with Russia to extend production cuts into 2020.
Stocks around the globe also reacted with gains.
Chinese shares ended at their highest level in more than two months. The Shanghai Composite jumped 2.2 percent, Japan's Nikkei added 1.8 percent. Hong Kong's Hang Seng was closed for a holiday.
In Europe, London's FTSE rose 1.3 percent, Germany's DAX gained 1.3 percent and France's CAC was 0.8 percent higher.
In Economic news, The U.S. economy's manufacturing sector expanded in June but at a slower pace than the previous month and the slowest pace overall since October 2016. The Institute for Supply Management (ISM) said its index of national factory activity fell to 51.7 from 52.1 the month before. The reading was just above expectations of 51 from a Reuters poll.
The Commerce Department said on Monday construction spending declined 0.8 percent, the biggest drop since last November. Data for April was revised to show construction outlays rising 0.4 percent instead of being unchanged as previously reported. Economists polled by Reuters had forecast construction spending would rise 0.1 percent in May.
In Asian markets, Trump’s visit comes a day after he attended the G20 summit in Japan where he met with Chinese President Xi Jinping to push forward trade talks amid the two countries’ stalemate. He also cut a temporary deal with Chinese tech giant Huawei allowing U.S. suppliers to sell components to the company.
President Trump told FOX News' Tucker Carlson in an exclusive interview he is optimistic about a possible trade deal between his administration and Chinese President Xi Jinping.
"You just recently hours ago met with the Chinese president, Xi Jinping," Carlson said. "Are you closer, do you think after that meeting, to a trade deal?"
"I think so," Trump replied. "We had a very good meeting. He wants to make a deal. I want to make a deal. Very big deal, probably, I guess you'd say the largest deal ever made of any kind, not only trade."