Stocks closed higher on the first day of the fourth quarter as investors cheered news of Canada joining a trade deal with the United States and Mexico.
The Dow Jones Industrial Average rose 192.90 points to 26,651.21 on Monday as Chevron and Boeing outperformed. The S&P 500 gained 0.4 percent to 2,924.43, led by gains in energy, materials and industrials shares. The Nasdaq Composite closed 0.1 percent lower at 8,037.30, however, as declines in Facebook and Intel capped gains in tech.
Shares of Ford and General Motors advanced 0.8 percent and 1.6 percent, respectively, following the news. Boeing, a stock that is also sensitive to trade news, rose 2.8 percent.
"The biggest risk factor [in the market] is a trade war and we've dialed that down a bit," said Mike Bailey, director of research at FBB Capital Partners. Bailey noted, however, the market may be going too high, too fast right now. "I'm not calling for a major correction or a bear market, but I think we're getting a bit ahead of ourselves here."