Major US stock indices rose significantly amid growing expectations that China and the United States will reach the so-called first phase of the trade deal.

The Chinese publication Global Times reported that according to sources close to the government, Beijing and Washington reached a common consensus to conclude the first phase of the agreement, including the issue of tariff cancellation. This reinforced investor optimism, prompted last Saturday by statements by US national security adviser Robert O’Brien that the deal could still be closed by the end of the year. However, he also warned that US President Donald Trump did not intend to ignore the ongoing protests in Hong Kong.

Additional support to the market was provided by reports on M&A deals. So, TD Ameritrade Holding Corp. (AMTD; + 7.85%) will be acquired by its competitor Charles Schwab Corp. (SCHW; + 2.45%) for about $ 26 billion, Tiffany & Co. (TIF; + 6.27%) buys French LVMH for $ 135 per share or about $ 16.2 billion, Medicines Co. (MDCO; + 22.3%) buys Novartis (NVS; + 0.91%) for $ 85.00 per share. In addition, The Wall Street Journal reported that EBay Inc (EBAY; + 2.19%) is close to selling its stake in StubHub Viagogo for $ 4 billion.

Most DOW components recorded an increase (21 out of 30). The biggest gainers were UnitedHealth Group Incorporated (UNH; + 2.06%). Outsiders were shares of Exxon Mobil Corporation (XOM; -0.92%).

Almost all S&P sectors completed trading in positive territory. Only the utilities sector declined (-0.3%). The largest growth was shown by the health sector (+ 1.2%).

At the time of closing:

Dow 28,066.34 +190.72 +0.68%

S&P 500 3,133.65 +23.36 +0.75%

Nasdaq 100 8,632.49 +112.60 +1.32%