White House adviser Larry Kudlow told Fox Business that tariffs scheduled for December could be withdrawn if trade negotiations go well.
Canada's main stock index headed higher in late-morning trading, helped by gains the key financial and industrials sectors, while USA stock markets also climbed higher.
Trade-sensitive technology stocks .SPLRCT rose 1.1%, adding the most to the S&P 500.
"The earnings estimates are too low this year for both Q3 and Q4". The benchmark S&P 500 index ended Friday with its second weekly gain, while the Nasdaq rose for the third week in a row.
"We're watching for a breakout to the upside of that range", she said.
Wall Street has recovered after a rough start to the month on signs of progress in trade talks between the world's two largest economies. As of writing, the Dow Jones Industrial Average was up 0.2% on the day while the S&P 500 and the Nasdaq Composite were adding 0.45% and 0.65%, respectively.
Boeing (NYSE:BA) dragged on the Dow, as the company fell 5% after Credit Suisse (SIX:CSGN) and UBS downgraded the company to "neutral" from "buy", following reports that Boeing pilots were aware of safety issues with the 737 MAX's flight control software as long ago as 2016.
Investors are now gearing up for earnings reports this week from high-profile companies including Boeing, Microsoft Corp, Procter & Gamble Co, United Parcel Service Inc and Caterpillar Inc. The Nasdaq gained 58 points, or 0.7%, to 8,147.
Drug companies Teva Pharma Industries, McKesson Corporation (NYSE:MCK), AmerisourceBergen (NYSE:ABC), and Cardinal Health (NYSE:CAH) were mostly in the red after they reached a settlement deal with two OH counties over their alleged role in the opioid crisis, The Wall Street Journal reported.
Financial services companies posted the biggest gains as bond yields rose.
USA -listed shares of Teva Pharmaceutical Industries Ltd TEVA.N TEVA.TA jumped 8.7% after the company announced progress toward settling remaining opioid-related litigation.
The S&P/TSX composite index was up 52.22 points at 16,429.34.