NEW YORK, March 26 (Reuters) - The main U.S. stock indices advanced more than 2 percent on Monday, helping recoup some of last week's losses, amid signs that the United States and China were willing to negotiate on tariffs eased concerns about a trade war between the two countries.
President Donald Trump's move to impose tariffs on Chinese imports, helped send the main indexes into their steepest weekly declines in about two years last week.
The United States asked China in a letter last week to slash tariffs on U.S. autos, buy more U.S.-made semiconductors and give U.S. firms greater access to the Chinese financial sector, the Wall Street Journal reported on Monday.
Premier Li Keqiang said Monday China would treat foreign and domestic firms equally, not force foreign firms to transfer technology and would strengthen intellectual property rights, repeating promises that have failed to placate Washington.
COMMENTS: KEITH PARKER, US EQUITY STRATEGIST, UBS, NEW YORK:
"Some of the de-risking we saw last week on the back of China trade worries was pretty considerable... A lot was priced in, in terms of trade worries, and I think comments (about Trump not backing down) from (Treasury Secretary Steve) Mnuchin over the weekend helped to alleviate some fears of a potential escalation of trade tensions."
"Our view is that escalation of trade tensions was essentially priced in... We're back to pricing in some concern but not considerably more downside."
MARKET REACTION STOCKS: The Dow was up 503 points, or 2.15 percent after falling more than 1,000 points last Thursday and Friday; The S&P 500 was 1.94 percent higher and the Nasdaq was up 2.24 percent.
TREASURIES: The yield on the U.S. 10-year Treasury note rose to 2.8532 percent. VIX: The Cboe volatility index fell to 21.60 Dollar: The U.S. dollar index was off 0.50 percent (Compiled by Alden Bentley)