That followed Treasury Secretary Steve Mnuchin's declaration over the weekend that the administration was "putting the trade war on hold", including lifting tariffs that the United States had threatened on China in retaliation for its theft of USA intellectual property.
Though tensions abated, the two countries haven't reached a final resolution yet. The U.S. said it would send a team to China to work out the details. "It's a very complicated issue".
The European Union has said it refuses all trade talks with the United States unless Washington grants a permanent exemption from the painful steel and aluminium tariffs that are set to kick in on June 1.
That contributed to a broad rally in technology stocks.
"China must continue to be strong & tight on the Border of North Korea until a deal is made", he tweeted.
For the moment, though, markets found room to maneuver in the latest trade developments. Nor was there any mention of limiting Chinese investment in the U.S.in order to demonstrate to Beijing that if doesn't allow US companies to fully operate in China, America won't be open to its companies, either.
In 2.15pm trading in NY, the Dow Jones Industrial Average rallied 1.2 percent, while the Nasdaq Composite Index gained 0.4 percent. Earlier in the day the index had climbed as much as 371 points. The Nasdaq and S&P 500 followed, adding 0.5% and 0.6%, respectively.
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The easing of the trade dispute also boosted chipmakers, whose major clients include Chinese firms, with the Philadelphia chip index gaining 1.1 percent.
Shares of industrial exporting companies were the biggest winners in the S&P 500, adding 1.5%. China counterpunched with tariffs on USA products, rattling the market.
"We are not out of the danger zone yet", said Nick Marro, a China analyst with the Economist Intelligence Unit.
Liu said the agreement was a "necessity;" but, he added, "At the same time, it must be realized that unfreezing the ice can not be done in a day; solving the structural problems of the economic and trade relations between the two countries will take time".
To many investors, tariff threats stoked concerns that more countries would erect larger gates on trade.
"We have an interest in diversifying our sources of supply", a European source said. "It's noise; in the midterm, it's going to come down to what's being delivered growth-wise and earnings-wise".
US stock market futures indicate share prices will jump in early trading on Monday following the easing of trade tensions. Meanwhile, corporations have been buying their own stock back at a record pace. Greater deal making could give stocks another lift, he said.
This would help level the playing field between China and not only the USA but other trading partners that take issue with China, including European Union members. Oil prices have also hit multiyear highs recently, which can push up measures of inflation.
USA bond yields are likely to gain as safe-haven demand for bonds falls, with the 10-year Treasuries yield seen testing its seven-year high of 3.128 percent hit on Friday.