Dow jumps more than 200 points as trade fears dissipate

Drew Angerer | Getty Images

Traders and financial professionals work ahead of the closing bell on the floor of the New York Stock Exchange (NYSE), June 25, 2018 in New York City. 

“The market can surprise you with what it’s focused on,” said Art Hogan, chief market strategist at B. Riley FBR. “Now we’re focused back on fundamentals.”

“If you can take focus away from the trade war, that’s a good thing,” Hogan said.

Last week, the U.S. slapped tariffs on $34 billion of Chinese goods. China responded to the tariffs by imposing its own retaliatory levies on imports from the States.

Trade-war fears have been simmering for months, keeping market gains in check as investors fret over the impact of tariffs on corporate profits.

Wall Street looked ahead to the start of the corporate earnings season, with Citigroup, J.P. Morgan Chase and Wells Fargo all scheduled to release their results from the previous quarter. S&P 500 earnings for the second quarter are expected to have grown 20 percent, according to a FactSet estimate.

“The fact that we’re heading into the earnings season is a catalyst for stocks,” said Randy Frederick, vice president of trading and derivatives at the Schwab Center for Financial Research. “We’re expecting it to be strong and maybe even stronger than the previous one.”

European stocks rose on Monday after David Davis, the United Kingdom’s Brexit secretary, resigned. The Stoxx 600 index, which tracks a broad swath of European equities, gained half a percent.