Technology companies powered a rally on Wall Street Monday that gave the market its third straight gain.
The surge in tech stocks followed a US decision to give the Chinese telecom giant Huawei another 90 days to buy equipment from American suppliers. Chip makers like Qualcomm, Intel, and Micron rose.
The decision on Huawei appeared to put investors eager for any signs of progress in the US-China trade war in a buying mood.
The buying went well beyond technology, with stocks of communication services and health care companies and retailers notching solid gains. Financial stocks also rose as bond prices headed lower, sending yields higher. Energy stocks climbed following a 2.4 percent increase in US crude oil prices.
‘‘Today is an up day because we have some better news on China,’’ said Kate Warne, chief investment strategist at Edward Jones. ‘‘There’s likely to be many of these 1 percent higher, 1 percent lower days, as investors search for a longer-term direction. And that’s what we don’t have yet.’’
The S&P 500 climbed 34.97 points, or 1.2 percent, to 2,923.65. The Dow Jones industrial average rose 249.78 points, or 1 percent, to 26,135.79. The index briefly gained 336 points.
The Nasdaq, heavily weighted to technology stocks, rose 106.82 points, or 1.3 percent, to 8,002.81.
Smaller-company stocks also had a good day. The Russell 2000 index gained 15.21 points, or 1 percent, to 1,508.85.
Major stock indexes in Europe also finished solidly higher.
Despite their recent gains, US stock indexes are on track to finish the month with losses. The market has been highly volatile as investors try to parse conflicting signals on the US economy and determine if a recession is on the horizon. A key concern is that the escalating and costly trade conflict will hamper growth around the globe.
Last week, many stock indexes worldwide struck their lowest levels this year, before a late rally suggested some calm was returning to the markets in what is a traditionally low-volume time of the year. Analysts say the concerns that drove last week’s sell-off could resurface at any time.
‘‘Investors just need to be prepared for a lot swings up and down as markets move,’’ Warne said.
The market’s moves on Monday suggested investors’ anxiety took a back seat to optimism over the US decision on Huawei, at least for a day.
This could be seen in the bond market, where yields rose. That’s a reversal from much of August, when yields mostly fell as investors sought out the safety of government bonds as the US-China conflict escalated. On Monday, the yield on the 10-year Treasury note climbed to 1.61 percent, from 1.54 percent late Friday.
The rise in bond yields helped drive financial stocks higher. Wells Fargo added 1.9 percent, and Citigroup rose 1.3 percent.
Investors are weighing how much of an impact the trade conflict will have on global economies, some of which are already showing signs of slowing.
Earlier this month, Trump announced plans to extend tariffs to virtually all Chinese imports, many of them consumer products that were exempt from early rounds of tariffs. The tariffs have been delayed, but ultimately will raise costs for US companies bringing goods in from China.
Huawei has become part of the trade war, with the White House showing a willingness to use sanctions against the company as a bargaining chip. The US government blacklisted Huawei in May, deeming it a national security risk, meaning US firms aren’t allowed to sell the company technology without government approval.
Investors greeted the Trump administration’s decision to extend a limited reprieve on US sales to Huawei as a positive sign. Nvidia jumped 7 percent, Qualcomm added 2.2 percent, Micron Technology gained 3.4 percent, and Intel picked up 1.6 percent.
Apple rose 1.9 percent on news that CEO Tim Cook met with Trump over the weekend and discussed how tariffs are making it tougher for the iPhone maker to compete with rival Samsung.
Apple has manufacturing facilities in China, while Samsung builds its products mainly in South Korea. ‘‘I thought he made a very compelling argument, so I’m thinking about it,’’ Trump told reporters.
Big department store chains also rose Monday, recovering some of the ground lost last week after Macy’s slashed its profit forecast for the year. Nordstrom gained 3.1 percent, and Gap added 4.4 percent. Macy’s rose 0.9 percent.
This week offers investors a couple of opportunities to gauge the Federal Reserve’s willingness to cut interest rates further.
The central bank is releasing the minutes from its last meeting of policy makers Wednesday. Two days later, Fed chairman Jerome Powell is scheduled to deliver a speech at the central bank’s annual conference in Jackson Hole, Wyo.
Investors are hoping the Fed will continue to cut interest rates to shore up economic growth. The Fed lowered interest rates by a quarter-point at its last meeting — the first time in a decade.
In two tweets Monday, Trump called on the Fed to cut interest rates by at least a full percentage point ‘‘over a fairly short period of time,’’ saying that would make the US economy even better and would ‘‘greatly and quickly’’ enhance the global economy.
Traders will be weighing new data on sales of new US homes Friday and earnings reports from several big retailers this week, including Home Depot, Target and Gap, for any hints about the health of consumer spending.
US crude oil rose $1.34 to settle at $56.21 a barrel. Brent crude, the international standard, rose $1.10 to $59.74.