US stocks surged on Monday following an agreement between the US and China to suspend tariff threats.

The Dow Jones Industrial Average closed up 298.20, or 1.21 percent, with Wall Street's S&P 500 and Nasdaq indexes also making gains.

Aerospace giant Boeing was one of the leaders. It rose 3.6 percent, to close at $363.92. The aircraft maker is America's biggest exporter and China is a key customer.

Soybean prices rose 2.7 percent on the Chicago Mercantile Exchange on Monday, their strongest one-day gain in more than a month. China had said it would impose 25 percent tariffs on imports of US soybeans and other crops in retaliation for US tariffs on Chinese goods.

US Treasury Secretary Steven Mnuchin put a positive spin on the trade talks, telling CNBC on Monday they had already produced tangible benefits. "I think we've made very meaningful progress. Now it's up to both of us to make sure that we can implement it."

In a tweet on Monday, President Trump said:

"China has agreed to buy massive amounts of ADDITIONAL Farm/Agricultural Products – would be one of the best things to happen to our farmers in many years!"

About two hours later, he reiterated an earlier tweet that American farmers would benefit.

"Under our potential deal with China, they will purchase from our Great American Farmers practically as much as our Farmers can produce," Trump said.