US equities came back, trim half of last week's losses

• Dow achieved its best percentage daily gain in almost three years after adding 669 points.
• Wall Street's bull shrugged off trade-war concerns but remains highly sensitive to risk-related headlines.

US stocks started the day with a  solid advance, and despite a short-lived intraday setback, equities managed to resume their advances, and close near its daily highs. Receding fears about a trade war helped the Dow closed the day 669 points higher at 24,202.60. The Nasdaq Composite added a whopping 3.26% to settle at 7,220.54, while the S&P gained 70 points and ended the day at 2,658.55.

The Dow trimmed half of the past week's losses and posted its best percentage daily gain in almost three years, with only one out of thirty members closing in the red, General Electric that lost 1.15% and fell to its lowest since July 2009, with no particular catalyst behind the decline, but persistent concerns over the health of the economy.

Abating trade-war fears spurred demand for equities during European trading hours, but the positive mood faded ahead of the close, as news that the US and the EU expelled several Russian diplomats, alongside with another slump of Facebook shares' price, dented investors mood just temporarily.

The Dow managed to recover above its 200 SMAs, but closed well below the 20 and 100 DMAs, while technical indicators have bounced from oversold readings but remain well below their mid-lines, leaving this daily recovery at corrective at the time being. Stocks remain vulnerable to political headlines, which will likely continue leading the way for the rest of the week.