The Dow Jones and the S&P 500 carved out gains by the close on Monday, the first trading day in the last quarter of 2018.
Sentiment was boosted by reports Canada has joined a renegotiated trade deal with the US and Mexico.
The Dow Jones Industrial Average rose almost 200 points or by 0.75% to end at 26,651.
The S&P 500 was up 0.37% to finish at 2,924.
The tech-heavy Nasdaq fell 0.11% to settle at 8,037.
Tesla Inc (NASDAQ:TSLA) posted sharp gains after settling the SEC's lawsuit against it over the weekend, closing 17.35% up on MondAY at $310.70.
The electric car maker is expected get a boost from third-quarter vehicle numbers due out on Tuesday.
The Russell 2000 small-cap index declined 1.43% to conclude at 1,672.
The index was dragged down by Akorn Inc (NASDAQ:AKRX), which finished 58.71% lower at $5.36.
A judge ruled that German health care company Fresenius Medical Care (NYSE:FMS) was allowed to end its $4.8 billion bid for Akorn, citing the drug manufacturer’s compliance issues.
In Canada, the TSX rose 0.05% to trade around 16,081, buoyed by news of the trade deal.
1:40 PM: US stocks on the rise this afternoon after reaching a deal with Canada
US benchmarks were on the rise this afternoon after Canada joined a trade deal with the US and Mexico.
The Dow Jones Industrial Average rose more than 216 points with The Boeing Company (NYSE:BA) taking the spot of top gainer.
The S&P 500 was up around 16 points by midday.
The tech-heavy Nasdaq rose around 21 points. Tesla Inc (NASDAQ:TSLA) was a top-performing stock on the index after settling with the SEC over the weekend. The electric vehicle company is expected to report positive third-quarter production numbers on Tuesday.
The Russell 2000 small-cap index was down slightly, dragged lower by Akorn Inc (NASDAQ:AKRX).
A judge ruled that German health care company Fresenius Medical Care (NYSE:FMS) was allowed to end its $4.8 billion bid for Akorn, citing the drug manufacturer’s compliance issues.
Up north, the TSX rose nearly 30 points following news of the trade deal.
9:55 AM: US stocks climb in morning trade after Canada agrees to join US-Mexico trade pact
US stocks opened sharply higher on Monday as investors celebrated the news that Canada is set to join the trade pact already agreed to by the US and Mexico.
The US and Canada clinched a last-hour deal late Sunday which is set to revise the current North America Free Trade Agreement and is set to be called the United States-Mexico-Canada Agreement.
Early in the session, the Dow Jones Industrial Average index climbed 160 points to 26,619, pushed up by DowDuPont, American Express, Apple Inc, Chevron, Nike and Boeing.
Trade news also pushed up international manufacturers, with Ford (NYSE:F) jumping 1.6% and General Motors (NYSE:GM) up 1.5% while Boeing (NYSE:BA) and Caterpillar (NYSE:CAT), which are also considered trade bellwethers, picked up 1.5% and 0.6% respectively.
The S&P 500, meanwhile, added 17 points to 2,931, pushed up by a 12.9% jump in General Electric shares, which vaulted higher after the struggling conglomerate replaced its CEO John Flannery and announced a $23bn charge related to its power business.
The tech-laden Nasdaq also moved ahead by 56 points to 8,102, led by its biggest mover Tesla, which gained 15.3% after its CEO Elon Musk settled fraud charges with the Securities and Exchange Commission and agreed to step down as chairman of the electric car maker’s board.
Up in Canada, Toronto’s TSX soared by 81 points to 16,154, on the news that the country had reached an agreement with the US to resurrect NAFTA.
The Russell 2000 index of small-cap stocks, meanwhile, stayed flat at 1,700.
7:13 AM: Wall Street set for flying start to week as new US/ Canada trade deal cheers markets
Wall Street shares are set for a positive start to the week after a mixed close Friday as a new US, Canada trade deal is in focus while the September jobs report will roll into view at the tail-end.
"The agreement between US and Canadian trade delegates was struck just hours before the midnight deadline, and President Trump will be delighted that he managed to replace the North American Free Trade Agreement," said analyst David Madden, at CMC Markets.
"The Mexican component of the deal was reached in August and now that the Canadian element has fallen into place, bullish sentiment is sweeping across global markets."
The new deal is the United States-Mexico-Canada Agreement (USMCA), has 34 chapters and was agreed after six weeks of negotiations.
In the third quarter this year, the Dow Jones Industrial Average was the index that posted the best gains among the US markets.
The rise during the quarter by tech giants Apple Inc (NASDAQ:AAPL) and Amazon.com Inc (NASDAQ:AMZN) to $1 trillion in value was a big contributor to the advance.
On Friday, the Dow Jones added over 18 at 26,458, the Nasdaq added around four points at 8,046. The S&P 500 was around flat at 2,913.
In futures trade, the Dow Jones is up strongly on Monday - ahead by 207 points; the Nasdaq is up over 61 points, while the broader based S&P 500 is up around 18 points.
Up in Toronto, the TSX finished Friday down around 131 points at 16,073.
In Europe, indices are higher across the board on Monday.
The FTSE 100 is up around six points at 7,516; the German DAX is up nearly 78 at 12,324 and the French CAC 40 is ahead by nearly 16 at 5,509.
In Japan, the Nikkei 225 added over 125 points Monday to close at 24,245, while the markets in Hong Kong and the Chinese mainland were closed for holidays.