(CNBC) -- Stocks rose on Monday, erasing earlier losses, as worries about a potential trade war waned.
The Dow Jones industrial average traded 400 points higher by late-afternoon after dropping as much as 150 points. Caterpillar was the biggest contributor of gains to the Dow, rising 3.5 percent.
The S&P 500 rose 1.4 percent after trading lower earlier in the session, with utilities as the best-performing sector. Harley-Davidson, a closely watched stock amid the tariff news, rose more than 2.5 percent. The Nasdaq composite advanced 1.2 percent.
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