(CNBC) — Stocks closed sharply higher on Monday as bank shares rose, while concerns over a trade war between the U.S. and key partners dissipated for the moment.

The Dow Jones Industrial Average rallied 320 points, with J.P. Morgan Chase, Goldman Sachs and Caterpillar as the best-performing stocks in the index. The S&P 500 gained 0.7 percent, as financials climbed 2.3 percent. The Nasdaq composite also advanced 0.9 percent as Amazon, Netflix and Apple all rose at least 1 percent.

Bank stocks rose at least 2.5 percent, led by Bank of America, Citigroup, Goldman Sachs and J.P. Morgan Chase. The SPDR S&P Bank ETF (KBE) rose 2.3 percent and posted its best day since March 26, when it gained 3.3 percent.

Note: Read our discussion guidelines before commenting.