Both Mnuchin and Lary Kudlow, head of the president's National Economic Council, said that while China did not agree to meet the $200 billion deficit reduction goal that President Donald Trump has discussed, the Chinese did agree to steps that could ultimately mean big cuts in the trade gap between the two nations.
"If you look at some forecasts for 2035, there are really only two places that have significant increases in LNG imports".
"China has agreed to buy massive amounts of ADDITIONAL Farm/Agricultural Products - would be one of the best things to happen to our farmers in many years!" he said in a series of postings on Twitter.
"Treating Trump literally is destructive for investors", he said.
"The statement noted agreement on reducing the USA trade deficit with China by increased purchases of US goods and services by China, including agriculture, energy and manufactured goods and services", wrote Louis Kuijs, head of Asia economics at Oxford Economics.
The S&P 500 added 20.04 points, or 0.7%, to 2733.01, as all 11 sectors in the broad index rallied.
Shortly after the opening bell, the Dow Jones Industrial Average jumped 297.65 points, or 1.20 percent, to 25,012.74.
The easing of the trade dispute also boosted chipmakers, whose major clients include Chinese firms, with the Philadelphia chip index gaining 1.1 percent. In the Dow, Boeing rose 3.6% and Caterpillar 2.1%. The UK's FTSE 100 climbed 1.0% to an all-time high.
"The weekend talk appears to have made progress".
As long as they do that, they are unlikely to introduce any tariffs.
If that happens, he said stocks could be set for further gains because they are still below their early 2018 highs and analysts expect stronger earnings growth, which makes stock prices seem less expensive.
U.S. conglomerate General Electric gained 1.9 per cent, after confirming it would merge its transportation business with rail equipment maker Wabtec, which jumped about 3.5 per cent. GE will get $2.9 billion in cash and will own 50.1 percent of the combined company, and the deal will help it narrow its business down to the aviation, health care and energy industries.
Wabtec gained 3.5 percent to $98.55. Stocks have rallied several times on the belief that trade tensions were easing, only to slide as sentiment changed.
US crude rose 1.8 percent to $72.56 per barrel and Brent was last at $79.52, up 1.29 percent on the day.
Fifth Third Bancorp fell almost eight per cent on plans to acquire regional lender MB Financial, which itself gained almost 13 per cent. The Nasdaq increased 30 points, or 0.4 percent, to 7,385.
Investment manager Blackstone agreed to buy LaSalle Hotel Properties for $33.50 a share, or $3.7 billion in cash.
The dollar rose to 111.11 yen from 110.68 yen late Friday. The euro dipped to $1.1772 from $1.1773.
The statement also didn't mention additional US demands, including a halt to subsidies and other government support for the Made in China 2025 plan that targets strategic industries from robotics to new-energy vehicles. Brent crude, used to price worldwide oil, added 0.9 percent to $79.22 per barrel in London. Natural gas fell 1.3 percent to $2.81 per 1,000 cubic feet.
United States government bonds were little changed ahead of the scheduled sale of $US115b of short- and intermediate-term notes. Silver rose 0.4 percent to $16.52 an ounce. Copper picked up 1.1 percent to $3.10 a pound.
Bond prices held steady. Treasury yields nudged higher, taking the dollar with them.