U.S. stocks closed sharply higher on Monday as traders saw geopolitical tensions easing. The gained 1 percent to close at 2,465.84, with information technology closing at a record high. The S&P also posted its best day since April 24, when it rose 1.08 percent. The Dow Jones industrial average rose 135.39 points to end at 21,993.71, with Goldman Sachs, Apple and Boeing contributing the most gains. The Nasdaq composite outperformed, rising 1.34 percent to 6,340.23, as shares of Tesla, Amazon and Facebook all rose.

Major U.S. Indexes

Stocks were coming off their second-worst weekly performance of the year, with the S&P 500 falling 1.43 percent. "What we're seeing is a bit of a relief rally," said Peter Cardillo, chief market economist at First Standard Financial. "The reason for that is the rhetoric [between North Korea and the U.S.] has toned down, for the moment." Secretary of State Rex Tillerson and U.S. Secretary of Defense James Mattis stated that the current U.S. administration would continue to pursue diplomatic resolutions with Pyongyang. On Sunday, the two U.S. officials wrote in a commentary piece published in the Wall Street Journal that "the U.S. has no interest in regime change or accelerated reunification of Korea."

Trader working on the floor of the New York Stock Exchange Andrew Burton | Getty Images