New York, Dec 17 (IANS): US stocks closed higher on Monday as investors' sentiment was lifted after China and the US agreed on the text of a phase-one economic and trade agreement.

The Dow Jones Industrial Average was up 100.51 points, or 0.36 per cent, to 28,235.89. The S&P 500 increased 22.65 points, or 0.71 per cent, to 3,191.45. The Nasdaq Composite Index rose 79.35 points, or 0.91 per cent, to 8,814.23, the Xinhua news agency reported.

China and the US have agreed on the text of a phase-one economic and trade agreement based on the principle of equality and mutual respect, and reached consensus that the US side will fulfill its commitments to phase out its additional tariffs on Chinese products, according to a statement by the Chinese side Friday.

US experts and business people hailed the agreement as a move to de-escalate trade tensions, benefit their respective and global economies, and lay a favourable groundwork for future negotiations.

On data front, private sector firms across the US registered a slightly stronger expansion in business activity at the end of 2019, according to IHS Markit on Monday.

Adjusted for seasonal factors, the IHS Markit Flash US Composite PMI (Purchasing Managers Index) Output Index posted 52.2 in December, up from 52.0 in November, to indicate the quickest rise in output since July.

Nonetheless, the rate of growth was below the series trend and only moderate overall, said IHS Markit in a report.