S&P 500 hits record high following G-20 trade progress

The S&P 500 hit a record high on Monday, the first trading day after news of easing trade tensions between the U.S. and China at the Group of 20 (G-20) meeting over the weekend.

The market touched 2,977 during trading. It closed at 2,964, about 0.8 percent above its Friday close.

{mosads}At a meeting with Chinese President Xi Jinping, President Trump agreed to delay the imposition of new tariffs on $300 billion worth of imports from China and renew trade negotiations for a broader deal. Trump also said he would lift restrictions on Chinese telecommunications giant Huawei, while Xi promised to buy more U.S. agriculture products.

Markets have viewed the trade war as a major threat to the global economy, alongside an overall slowdown in the world economy and expected moderation in U.S. growth.

One of the best predictors of a potential recession — the bond yield curve — has inverted in recent weeks, meaning investors are accepting lower yields on long-term bonds than shorter-term ones.

Still, the U.S. just began its 121st month of uninterrupted growth that began under former President Obama, making it the longest economic expansion in U.S. history.

Economic growth is expected to be a key campaign issue in the 2020 presidential election. Trump has often pointed to monthly job gains and a historically low unemployment rate as proof that his administration’s economic policies are boosting the economy.

Updated at 5:16 p.m.