United States stocks rose on Monday, helped by bank, industrial and energy shares, as investors looked ahead to a strong quarterly earnings season.
Industrial, energy and consumer discretionary shares also rose sharply, while S&P utilities and telecommunications - among the market's recent outperformers - led percentage declines. The S&P 500 financial index rose 2.3 percent, leading gains among sectors.
Earnings season gets going in earnest Friday with reports from JPMorgan Chase and two other giant United States banks.
A stronger economy and plans for more buybacks are helping bank shares, said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.
Those forecasts have enabled investors to look past worries over trade conflicts between the USA and China and other partners.
Earnings for the second quarter are projected to rise 20 per cent or more compared with the year-ago period, thanks to a strong USA economy and the boon from last year's massive corporate tax cuts. The two countries slapped tit-for-tat tariffs on $34 billion of each other's goods on Friday.
"The angst going into last Friday was pretty significant, and now, with the realization that we're here and the world hasn't come to an end, ... the money is falling in", Hellwig said.
Caterpillar rose 3.8 percent, providing the biggest boost to the Dow. But the benchmark S&P 500 closed up 0.84 percent on Friday as many analysts said the move was already priced in, but warned that further escalation could dent the appetite for stocks.
At 9:49 a.m. ET the Dow Jones Industrial Average was up 193.11 points, or 0.79 percent, at 24,649.59, the S&P 500 was up 15.33 points, or 0.56 percent, at 2,775.15 and the Nasdaq Composite was up 46.97 points, or 0.61 percent, at 7,735.36.
A Bank of America Merrill Lynch research report showed earnings per share for S&P 500 companies for 2018 was revised higher amid better-than-expected first-quarter results, higher oil prices and stronger-than-expected US economic growth.
US analysts' estimates for S&P 500 second-quarter profit growth have risen slightly since April, putting the latest forecast at around 21 percent, according to Thomson Reuters data.
Twitter shares fell 5.3 per cent after it was reported the social media company suspended more than 70 million fake accounts, which analysts say will impact user growth.
About 6.0 billion shares changed hands on US exchanges.
Advancing issues outnumbered declining ones on the NYSE by a 1.06-to-1 ratio; on Nasdaq, a 1.53-to-1 ratio favored decliners.
The S&P 500 posted 20 new 52-week highs and no new lows; the Nasdaq Composite recorded 136 new highs and 26 new lows. That compares with the 7 billion daily average for the past 20 trading days, according to Thomson Reuters data.