The Dow Jones Industrial Average rose 287.97 points to 25,826.43 while the S&P 500 gained 1.1 percent to close at 2,790.37. The Nasdaq Composite rose 1.5 percent to end the day at 7,441.51. The consumer discretionary sector in the S&P 500 was the best performer, rising 2.5 percent. Amazon and Apple rose 4.9 percent and 3.5 percent, respectively.

Stocks came off their highs in midmorning trading, however. At its high of the day, the Dow had risen nearly 442 points.

• "I don't know why the market rallied on that news," said Bruce Bittles, chief investment strategist at Baird. "Does it solve any of the long-term issues? I don't think so. That's one hurdle the market has to deal with."

• European stocks rallied Monday morning, after President Donald Trump and President Xi Jinping negotiated a temporary truce to their trade conflict over the weekend.

The pan-European Stoxx 600 was up more than 1.6 percent during mid-morning deals, with almost all sectors in positive territory. Germany's DAX index led the gains among the major bourses, surging around 2.5 percent Monday morning.

• Stocks in Asia slipped Tuesday in morning trade amid uncertainty about the future of U.S.-China trade relations.

Japan's Nikkei 225 declined by 0.14 percent in early trade while the Topix index shed 0.25 percent. Shares of automaker Nissan slipped 0.25 percent following a Reuters report that the company's external board is set to meet today to discuss a replacement for arrested former Chairman Carlos Ghosn.

Meanwhile in South Korea, the Kospi slipped 0.21 percent.

The moves came after U.S. President Donald Trump and Chinese President Xi Jinping agreed to a 90-day postponement of any new tariffs in the trade war that has weighed heavily on global stock markets for most of 2018.

• There have been differences, however, between the descriptions of the agreement from the White House, from Trump himself and from Beijing. Questions also remain over who would lead the U.S. delegation in future trade talks with Beijing.

• In a morning note, Rodrigo Catril, a senior foreign exchange strategist at National Australia Bank, said the overnight trade news had "probably left the market with more questions than answers."

"Can the US and China really resolve their differences in 90 days? It seems that more details and signs of progress will be needed if the initial trade truce warm fuzzy feeling is to be sustained," Catril said.

Reference: CNBC, Reuters