USA stocks rose on Monday, helped by bank, industrial and energy shares, as investors looked ahead to a strong quarterly earnings season.
The S&P banks index climbed 2.7 percent, registering its biggest daily percentage gain since March 26.
The S&P 500 and Nasdaq also made solid gains, up 0.9 per cent each.
The United States and China engaged in tit-for-tat tariffs on Friday, both countries imposing duties worth $34 billion on each others' goods.
Earnings for the second quarter are projected to rise 20 per cent or more compared with the year-ago period, thanks to a strong U.S. economy and the boon from last year's massive corporate tax cuts.
"If it escalates, maybe it could become a problem but the angst going into last Friday was pretty significant, and now with just the realization that we're here and the world hasn't come to an end, and we're on the eve of what's going to be a dynamite earnings season, the money is falling in", Hellwig said.
The S&P 500 index has risen about 3 percent in the last four sessions.
"Once we get past these talks, which we view as a negotiating tactic by the Trump administration, this sector will jump", she said on a conference call previewing earnings. Caterpillar and other industrials have been among the hardest hit by recent trade worries.
A Bank of America Merrill Lynch Global Research report showed earnings per share for S&P 500 companies for 2018 was revised higher amid better-than-expected first-quarter results, higher oil prices and stronger-than-expected USA economic growth.
US analysts' estimates for S&P 500 second-quarter profit growth have risen slightly since April, putting the latest forecast at around 21 percent, according to Thomson Reuters data.
Twitter sank after the Washington Post reported that the social media company suspended more than 70 million fake accounts in May and June, which analysts said could be negative for user growth. The stock ended down 5.4 percent.
Advancing issues outnumbered declining ones on the NYSE by a 1.06-to-1 ratio; on Nasdaq, a 1.53-to-1 ratio favored decliners.
Trading volume was among the lightest of the year, with about 5.8 billion shares changing hands on U.S. exchanges.
The S&P index recorded 17 new 52-week highs and no new lows, while the Nasdaq recorded 97 new highs and six new lows.