Wall Street key stock indices opened sharply higher on Monday as the United States and China reached a deal to reduce tariffs.

China and the United States announced a 90-day truce in their trade war, agreeing to cut most of their tariffs.

At the opening bell, the Dow Jones Industrial Average rose 649.7 points, or 1.57%, to 41,899.05. The S&P 500 rose 147.3 points, or 2.60%, to 5,807.2​, while the Nasdaq Composite rose 745.6 points, or 4.16%, to 18,674.555.

Following the announcement of the trade deal, the value of the US dollar surged against other currencies and Treasury yields advanced.