Wall Street ends day with solid gains as risk appetite returns

Major equity indexes in the U.S. recorded robust earnings on Monday as investors took the opportunity of the improved risk sentiment amid easing geopolitical tensions between the United States and North Korea.

After leaping its highest level of 2017, the CBOE Volatility index .VIX, a key measure of market expectations of near-term volatility, retreated more than 3% on Monday. Moreover, traditional safe-havens like the JPY, gold, and the CHF lost value against the greenback.

Commenting on today's rebound, "the selling never did cascade. We had an adjustment and this week investors were able to ... say the Korean situation is something to watch, but it's probably had its effect on the market already," Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama, told Reuters.

The Dow Jones Industrial Average added 135.39 points, or 0.62%, to close the day at 21,993.71. The S&P 500 rose 23.25 points, or 0.95%, to 2,463.38 and the Nasdaq Composite gained 81.36 points, or 1.30%, to 6,337.91.

Headlines from the U.S. session:

• Gold heads for first negative daily close in a week, trades around $1280
• Dollar Index gains momentum and rises to test Friday’s highs
• A diplomatic solution to the North Korea missile crisis? - UOB
• Fed's Dudley: Still sees US growth at 2%
• WTI headed for a test of the key $47.80 level?
• Theme of the week: Risk-on, risk-off - ING
• Inflation expectations mostly steady - NY Fed - Survey of Consumer Expectations
• Canadian Foreign Min: Wants stronger labor safeguards & environmental provisions in NAFTA