landsberg bennettU.S. stocks closed at fresh record levels on Monday. The S&P 500 jumped 0.7%, while the Nasdaq Composite rallied 0.9%. The Dow advanced 100 points, with gains capped by a 4.3% decline in Boeing shares. The aerospace giant was pressured on reports that production may be halted on its grounded 737-MAX aircrafts.

Investor optimism remain bolstered by news the U.S. and China agreed to a “phase one” trade deal, which will reportedly be signed next month. As part of the agreement, Washington’s December 15th round of tariffs did not go into effect, and levies on some existing Chinese imports should be cut in half. For their part, Beijing promised to increase U.S. agricultural purchases.

Treasuries declined amid the perceived “risk on” sentiment. The yield on the 10-year note was up six basis points to 1.88%. On the data front, a report from research firm IHS Markit showed U.S. manufacturing and services sector activity both remain in expansionary territory in December. Separately, homebuilder confidence climbed to the highest level since 1999, according to the NAHB. Overseas, Chinese industrial production gained the most since June. In commodities, WTI crude added 0.3% to $60.21/barrel, hovering near a three-month high.

Across the pond, the U.K.’s FTSE 100 hit its best level since August as the mood remained elevated on last week’s pro-Brexit Conservative Party victory. The easing political tensions also sent the Euro STOXX 600 to a new all-time high, putting the benchmark on pace for its best annual performance in a decade, up 23.7% year-to-date.