Wall Street cheers trade truce, S&P 500 hits fresh record high

• US suspends tariffs on Chinese imports as sides look to make a trade deal.
• CBOE Volatility Index drops more than 8% on Monday.
• Risk-sensitive technology shares lead the rally by adding more than 2%.

As signalled by the upbeat tone surrounding global stock markets and the sharp increase in the S&P 500 Futures, major equity indexes in the U.S. started the day with strong gains on Monday as investors are finally breathing a sigh of relief after U.S. President Trump and Chinese President Xi decided to make a ceasefire in the trade war while restarting negotiations.

Boosted by the positive risk sentiment, which can be seen a more-than-8% drop in the CBOE Volatility Index, the Dow Jones Industrial Average was last up 1.05% on the day while the S&P 500 was testing fresh record highs while adding 1.2% and the Nasdaq Composite was rising nearly 2%.

Among the 11 major S&P 500 sectors, the risk-sensitive Technology Index is leading the rally with a gain of over 2%. On the other hand, the defensive Real Estate and Utilities indexes are posting small losses in the early trade.