Federal Reserve Chairman Jerome Powell speaks at a conference, Friday, January 4, 2019, in Atlanta. Powell said that he will not resign if asked to do so by President Donald Trump, a message that heartened investors who had been concerned by Trump's repeated attacks on his hand-picked choice to lead the nation's central bank.
Annie Rice/AP
Federal Reserve Chairman Jerome Powell speaks at a conference, Friday, January 4, 2019, in Atlanta. Powell said that he will not resign if asked to do so by President Donald Trump, a message that heartened investors who had been concerned by Trump's repeated attacks on his hand-picked choice to lead the nation's central bank.
Now playing
02:19
Fed chair comments push markets higher
Now playing
04:56
How these startups are tackling high drug costs in the US
WASHINGTON, DC - MARCH 09: Elon Musk, founder and chief engineer of SpaceX speaks at the 2020 Satellite Conference and Exhibition March 9, 2020 in Washington, DC. Musk answered a range of questions relating to SpaceX projects during his appearance at the conference. (Photo by Win McNamee/Getty Images)
Win McNamee/Getty Images
WASHINGTON, DC - MARCH 09: Elon Musk, founder and chief engineer of SpaceX speaks at the 2020 Satellite Conference and Exhibition March 9, 2020 in Washington, DC. Musk answered a range of questions relating to SpaceX projects during his appearance at the conference. (Photo by Win McNamee/Getty Images)
Now playing
04:19
Bitcoin and crypto's 'Elon Musk problem'
Now playing
02:29
'Outrageous' used car prices amid highest inflation in 13 years
jeff bezos blue origin space launch cooper intv sot vpx_00021804.png
jeff bezos blue origin space launch cooper intv sot vpx_00021804.png
Now playing
03:05
Jeff Bezos reveals most surprising part of space mission
CNN
Now playing
03:05
These moms explain how child tax credit checks will help them
CNN/John General/Atom Smasher
Now playing
04:04
Here's everything you need to know about ransomware
Now playing
04:04
Subway CEO on menu changes: The one thing we did not touch is our tuna
Now playing
02:40
Gretchen Carlson tells Anderson about the bipartisan bill she's backing to help workers
Rachael Flores
Now playing
02:22
These Burger King workers all had it their way, and quit
Virgin Galactic
Now playing
02:05
Richard Branson lands safely after rocketing to outer space
CNN/Shutterstock
Now playing
02:20
Prices are going up on almost everything. Here's why
A car drives by a Speedway gas station next to the Shell refinery on March 03, 2021 in Martinez, California. Gas prices have increased across the United States to a national average of $2.72 per gallon, an increase of 30 cents from one month ago. Gas in California has an average price of $3.68 per gallon, the highest in the nation.  (Photo by Justin Sullivan/Getty Images)
Justin Sullivan/Getty Images
A car drives by a Speedway gas station next to the Shell refinery on March 03, 2021 in Martinez, California. Gas prices have increased across the United States to a national average of $2.72 per gallon, an increase of 30 cents from one month ago. Gas in California has an average price of $3.68 per gallon, the highest in the nation. (Photo by Justin Sullivan/Getty Images)
Now playing
04:01
Gas prices are high. Here's why
Now playing
02:46
The US needs construction workers
BetterUp CEO Alexi Robichaux workplace mental health orig_00023111.png
BetterUp CEO Alexi Robichaux workplace mental health orig_00023111.png
Now playing
03:06
This CEO says leaders need to focus on mental health to boost productivity at work
A driver uses the Didi Chuxing ride-hailing app on his smartphone while driving along the street in Beijing on July 2, 2021. (Photo by Jade GAO / AFP) (Photo by JADE GAO/AFP via Getty Images)
Jade Gao/AFP/Getty Images
A driver uses the Didi Chuxing ride-hailing app on his smartphone while driving along the street in Beijing on July 2, 2021. (Photo by Jade GAO / AFP) (Photo by JADE GAO/AFP via Getty Images)
Now playing
02:13
Didi shares plummet after China bans it from app stores
New York CNN Business —  

The stock market, left for dead in December, is racing back to life.

The Dow gained 98 points on Monday, building on the recent recovery on Wall Street. The Nasdaq jumped 1.3%, while the S&P 500 advanced 0.7%.

While the market rally faded a bit by the end of the day — the Dow had been up 255 points at one point — the gains still build on Friday’s 747-point spike.

All told, the Dow has surged 1,750 points, or 8%, since Christmas Eve. Not bad for a market that suffered its worst December since the Great Depression.

So what’s driving the turnaround? Mostly it’s cautious optimism about the trade war and health of the Chinese and American economies.

Investors are hopeful that the United States and China will reach a breakthrough on trade talks that began on Monday in Beijing. Wall Street has been worried that the trade clash is deepening slowdowns in both economies.

Friday’s rally was set off by China’s efforts to stimulate its economy as well as soothing words from Federal Reserve chief Jerome Powell, who promised patience while raising interest rates. And the blockbuster December jobs report has removed the fear of an imminent recession in the United States.

Michael Block, market strategist at Third Seven Advisors, said that while some recent economic reports have been “troubling,” the market was due for at least a temporary rebound.

“When things are as beaten up as they are, the Street can move things around in the short-term,” he said.