U.S. stocks jumped on Monday, with major indexes partially rebounding after their worst weekly performance in more than two years.

Analysts noted that the bounce was technical, rather than driven by fundamentals or sentiment.

Trade developments were a primary driver of market action, and reports that U.S. and China officials are conducting behind-the-scenes talks to avert a global trade war helped to erase some of the uncertainty spurred by recent policy pronouncements. A handful of Federal Reserve speakers may capture attention as well, as a holiday-shortened week of trading kicks off.

What are the main benchmarks doing?

The Dow Jones Industrial Average DJIA, +2.31% climbed 400 points, or 1.7%, to 23,933. The S&P 500 SPX, +2.04% was up 36 points, or 1.4%, to 2,625. The Nasdaq Composite Index COMP, +2.24% gained 113 points to 7,106, a rise of 1.6%.

The S&P 500 had been at one point on track for its biggest one-day advance since before the 2016 presidential election.

The day’s gains come after a protracted period of weakness for Wall Street. The Dow closed Friday at its lowest level of the year, while all three indexes suffered their worst weekly returns since January 2016, when fears of a global economic rout dogged sentiment.

At current levels, the Dow is 10% below its record close while the S&P is 9% below its all-time high and the Nasdaq is 7.4% below its record.

What’s driving markets?

Global trade tensions are expected to remain front and center for investors in what will be a holiday-shortened week, with markets scheduled to close in observance of Good Friday.

But equity traders seem to be taking some cheer in reports that China and the U.S. have been holding discussions, in a bid to help stave off a trade war.

Those talks, led by U.S. Treasury Secretary Steven Mnuchin and Liu He, China’s vice premier for economic policy, are aimed at providing better access to Chinese markets for U.S. companies. Tensions ratcheted up last week after the Trump administration declared tariffs on certain Chinese goods and China fired back with its own trade-related clampdown.

Mnuchin told Fox News on Sunday that he was “cautiously hopeful” an agreement can be reached with China.

Meanwhile, the U.S. and South Korea have reached a deal that will give the Asian country a permanent exemption from trade tariffs.

Read: The Dow may be at the mercy of politicians until earnings season

What are strategists saying?

“Big positive moves in stocks tend to come after biggest down days and today’s action looks like a technical bounce, just because markets were so weak for days,” said Mike Antonelli, equity sales trader at Robert W. Baird & Co.

“It’s hard to believe that sentiment changed in a matter of days. It is very well possible we have already peaked if you consider the January as the last euphoria of this cycle,” Antonelli said.

Read: How investors can protect against a trade war—in one sentence

What is on the economic docket?

The Chicago Fed national activity index for February came in at 0.88, up from 0.02 in January.

Read: Is the pressure off? Inflation likely to die down in February, but don’t get used to it

Read: John Williams may be named New York Fed president: report

What stocks are in focus?

Facebook Inc. FB, -1.91% fell 2.6% after the Federal Trade Commission said it was investigating the company’s privacy practices. The social-media giant was among the biggest percentage decliners among S&P 500 components, and the day’s selloff pushed it into bear-market territory, defined as a drop of at least 20% from a peak. It has dropped in five of the past six sessions amid a continuing scandal about how it has handled user data.

The stock was an outlier among tech and internet companies, which were otherwise among the top-performing industry groups of the day. Microsoft Corp. MSFT, +6.64% gained 5.9%, Netflix Inc. NFLX, +4.28% added 3%, and Apple Inc. AAPL, +3.59% and Amazon.com Inc. AMZN, +2.50% both gained about 2%.

USG Corp. USG, +19.46% rejected an unsolicited buyout bid by Gerb. Knauf AG, saying it “substantially undervalues” the company and is not in the best interest of its shareholders. The stock gained 19%.

Earlier, Berkshire Hathway Inc. BRK.A, +2.70% BRK.B, +2.84% offered to sell its 30.8% stake in the building materials group to privately held Gebr. Knauf Verwaltungsgesellschaft KG.

Finish Line Inc. FINL, +30.38% shares surged 30% after JD Sports Fashion PLC JD., -4.67% said it would buy the U.S. retail chain for $13.50 per share in cash, in a deal valued at $558 million.

Intel Corp. INTC, +5.71% rose 5.3% after Raymond James upgraded the stock to market perform, citing an improved supply/demand balance in the semiconductor industry.

Paychex Inc. PAYX, -0.66% fell 1.1% despite reporting third-quarter revenue that topped expectations.

Biohaven Pharmaceutical Holding Co. Ltd. BHVN, -12.36% plummeted 11% after it released data from two phase 3 clinical trials for its migraine drug.

DarioHealth Corp. DRIO, +19.29% jumped 24% after it received FDA clearance for its blood glucose monitoring system to be used on Apple iPhones.

General Electric Co. GE, -1.64% fell 2.2% to $12.78, dropping below $13 for the first time since July 2009. The stock was the only one of the 30 Dow components to be lower on the day; GE has shed 57% over the past 12 months.

What are other markets doing?

European equities SXXP, -0.72% closed lower, pressured as the euro jumped nearly 0.8% against the dollar. Asian markets finished mixed, as losses eased toward the close, and the Korean Kospi Composite Index ended 0.5% higher after news of the U.S. trade agreement.

The ICE U.S. Dollar Index DXY, -0.50% fell 0.5% to 89.028, while gold GCJ8, +0.37% rose 0.4%.

Oil futures CLK8, -0.26% pulled back 0.6% to $65.51 a barrel.

Read: China aims to shake up oil-futures market with own contract