The major domestic equity indexes rallied on Monday following a truce between the United States and China in their trade dispute, which has clouded the outlook for the stock market for much of the year. As a result, the benchmark S&P 500 index climbed more than 1 percent, building off of its largest weekly percentage gain in nearly seven years a week ago.

The markets were lifted by news over the weekend that Trump and Chinese President Xi Jinping agreed during talks in Argentina to hold off on new tariffs for 90 days, declaring a truce following months of escalating tensions on trade and other issues.

Last week, the S&P 500 gained 4.8 percent as investors interpreted commentary from the Federal Reserve as signaling that interest rate hikes may be less aggressive than feared. The index rebounded after confirming its second 10 percent correction of the year and is now up 4.4 percent in 2018.

On Monday, the technology sector index, among the groups seen as sensitive to trade tensions, gained 2.1 percent. Apple rose 3.5 percent.

Shares of Boeing and Caterpillar, two industrial companies viewed as trade bellwethers, gained 3.8 percent and 2.4 percent, respectively, and gave a lift to the blue-chip Down Jones Industrial Average.

The industrial sector index rose 1.2 percent and the energy shares index rose 2.3 percent as oil prices bounced back from their recent swoon. Along with the U.S.-China trade detente, oil received support as Canada’s Alberta province ordered a production cut, while exporter group OPEC looked set to reduce supply.

In corporate news, shares of Tesaro rose 58.5 percent after GlaxoSmithKline agreed to buy the cancer specialist for $5.1 billion.

Tribune Media ended the trading day with a gain of 11.7 percent after Nexstar Media Group said it agreed to acquire its Chicago-based peer for about $4.1 billion, making it the largest regional domestic TV station operator. Nexstar shares rose 6.9 percent.

Approximately 8.4 billion shares changed hands on the major domestic equity exchanges, a number that was above the 7.6 billion share daily average over the past 20 sessions.

Manufacturing Rebounds

The Institute for Supply Management index rebounded in November as new orders picked up and companies added workers, indicating that factories remain relatively healthy in the fourth quarter.

The index, which is developed from a survey that tries to capture manufacturing business conditions, increased to 59.3 from 57.7, data showed Monday. The rise from a six-month low also exceeded estimates in a Bloomberg survey calling for the gauge to edge down to 57.5. Readings above 50 indicate expansion.

According to Bloomberg, the factory gauge remains elevated, signaling that corporate tax cuts and consumer strength continue to drive demand and expansion. However, trade tensions with China still cloud the outlook even after signs of a thaw following President Donald Trump’s meeting with counterpart Xi Jinping at the Group of 20 summit in Argentina.

New orders and employment recovered after slumping in October, while a gauge measuring prices factories paid for materials tumbled by the most in more than six years. That larger-than-expected decline contrasts with warnings from some economists that the trade war with China may fuel inflation. Falling prices for oil, a major indicator of manufacturing expenses, may be a contributor to the drop.

Even amid broader strength, trade still weighed on manufacturing: An index of exports held at the lowest level since late 2016 and a measure of imports fell to the lowest since June 2017.

Backorders increased, indicating manufacturers still confront bottlenecks in getting goods to customers. At the same time, the index of supplier deliveries fell, though the measure still indicated that delivery times are slowing.

Looking at some specific numbers, the new orders index rose to 62.1 from 57.4; employment up to 58.4 from 56.8. The production index hit 60.6 up from 59.9 and prices-paid measure fell to 60.7 from 71.6, the largest decline since June 2012.

Supplier deliveries gauge fell to 62.5 from 63.8; index of backlogs rose to 56.4 from 55.8, while the exports index was unchanged at 52.2. The imports index fell to 53.6 from 54.3