US stocks close with gains on hopes of easing trade tensions

By Mucahithan Avcioglu

ISTANBUL (AA) - The New York Stock Exchange ended Monday on a high note, after hopes were raised for a possible end to the federal government shutdown and the easing of trade tensions between the US and China.

The Dow added 1.12%, or 515.97 points, to close at 46,706.58.

The Nasdaq soared 1.37%, or 310.57 points, to close at 22,990.54, while the S&P 500 rose 1.07%, or 71.12 points, to 6,735.13.

The Volatility Index (VIX), also known as the "fear index," fell 12.27% to 18.23.

Markets responded positively to President Donald Trump's remarks about reaching a "fair deal" with Beijing after renewed trade tensions wreaked havoc on the markets last week.

“We're going to be meeting in South Korea in a couple of weeks, and we'll see what we can do," he told reporters at the White House, speaking of expected talks with Chinese President Xi Jinping.

Trump said he expects to reach a "fair deal" with Beijing, adding: "I believe after we leave South Korea ... we're going to have a very good relationship with China."

He also said the two leaders will discuss multiple issues, without providing details.

-White House economist says shutdown 'likely to end' this week

Separately, hopes for an end to the government shutdown rose after White House National Economic Council head Kevin Hassett told CNBC Monday that he predicts the government shutdown is “likely to end sometime this week.”

But if that does not happen, the Trump administration may impose “stronger measures” to force Democrats to cooperate, he warned.

As the government shutdown, now on its 20th day, disrupts the flow of economic data, inflation data set to be released Friday is investors' focus ahead of a Fed meeting next week.

On the corporate side, Apple's shares closed at a record high, rising 3.94%, after a strong iPhone 17 sales report in the US and China.

The financial results of major companies such as Tesla, Ford, Netflix, Procter & Gamble, Coca-Cola, IBM and Intel, expected to be announced this week, are also being closely watched by markets.