On Monday the S&P 500 index (INDEX: SPX), Nasdaq 100 and Dow Jones industrial average rose solidly gaining more than 1% as investors started to return to riskier assets from gold after U.S. and North Korea tensions eased, Reuters reported.
The S&P financial sector rose 1.60%, technology index jumped up 1.39%, Dow Jones — 0.66% up, Nasdaq Composite also gained 1.21%.
"It seems like tensions may have de-escalated between North Korea and the United States that had been weighing on the markets last week," said senior equity research analyst at Fort Pitt Capital Group Kim Forrest.
Safe-haven gold dropped by 0.5% after hitting two-month highs last week when global markets were moving into negative territory because of the president Trump's fiery warning to Kim Jong Un that North Korea will "face fire and fury like the world has never seen”, if it does not stop threatening the United States.
That had shattered the financial world and wiped out nearly $1 trillion from global equity markets last week.