Wall Street hits new highs

Hopes for a trade truce lifted the three major indexes to new highs Monday. Apple and chip stocks rallied after a Chinese tabloid reported that the U.S. and China were "very close" to an initial trade deal. A flurry of merger deals also fueled buying, pushing the S&P up three-quarters percent..

Kramer Capital Research chief investment officer, Hilary Kramer:

SOUNDBITE: KRAMER CAPITAL RESEARCH CHIEF INVESTMENT OFFICER, HILARY KRAMER (ENGLISH) SAYING:

"It looks positive for U.S.-China trade. But ultimately, we could end up waiting until after the elections, after next November."

Trade-sensitive Nvidia shot higher. Morgan Stanley upgraded the chip maker's shares to "overweight" from "equal weight."

The biggest gainer on the S&P 500: Tiffany. LVMH is buying the upscale jeweler for roughly $16 billion.

Discount broker Charles Schwab is buying smaller rival TD Ameritrade for $26 billion. The deal drove up shares of both companies.

Shares of eBay gained. The e-commerce company is selling its ticketing unit, StubHub to a ticket reseller for $4 billion.