US stocks climbed on Monday as reports of stimulus efforts in China and Germany calmed fears of a severe downturn in the global economy. The benchmark S&P 500 has recovered most of its losses following Wednesday’s brief inversion of the yield curve between 2-year and 10-year Treasuries, commonly viewed as an indicator of a recession within the next two years. After falling nearly 3 per cent on Wednesday, the S&P 500 has risen for the last three sessions.

China’s central bank unveiled a key interest rate reform on Saturday to help steer borrowing costs lower for companies. On Sunday, German Finance Minister Olaf Scholz suggested that Berlin could make available up to 50 billion euros ($US55 billion) of extra spending. Stocks also received a boost as Washington extended by 90 days the window during which China’s Huawei Technologies , blacklisted by the US government in May, can buy components from US companies to supply existing customers.

Shares of Apple Inc rose 1.9 per cent to provide the biggest boost to the Nasdaq and the second-largest boost to the S&P 500 and the Dow. President Donald Trump said on Sunday that he had spoken with Apple chief executive officer Tim Cook, who “made a good case” that tariffs could hurt Apple. The S&P 500 technology index rose 1.6 per cent, while the Philadelphia semiconductor index rose 1.9 per cent.

The Dow Jones Industrial Average rose 249.78 points, or 0.96 per cent, to 26,135.79, the S&P 500 gained 34.97 points, or 1.21 per cent, to 2,923.65 and the Nasdaq Composite added 106.82 points, or 1.35 per cent, to 8,002.81. All of the 11 major S&P sectors were higher. Energy shares, which rose 2.1 per cent as oil prices advanced, led S&P sectors in percentage gains. Reflecting Monday’s risk-on sentiment, defensive sectors such as real estate and utilities lagged the broader index in percentage gains.


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