US stocks gained on Monday as Beijing's latest move to ease Covid-19 restrictions injected a note of optimism into markets rattled by inflation and rate-hike concerns. Treasuries and the dollar slipped.

Both the S&P 500 and the tech-heavy Nasdaq 100 climbed at least 1% amid gains in mega cap stocks, including Apple Inc. and Microsoft Corp. Amazon.com Inc. edged higher after implementing a 20-for-1 stock split. Twitter Inc. dropped more than 3% in early trading after Elon Musk said that the company had broken its merger agreement by holding back information about spam and fake accounts which he demanded.

Chinese regulators are set to ease curbs on ride-hailing giant Didi Global Inc. and other US-listed tech firms. Didi's shares soared more than 50%.

After the publication of stronger-than-forecast US labor market data for May, traders speculated that the Federal Reserve would not waver from its tightening path to rein in price pressures. However, Goldman Sachs Group Inc. economists are confident that the Fed may be able to pull off its aggressive rate-hike plan without tipping the country into recession. The easing of Chinese lockdowns will help abate supply-chain pressures.

The Stoxx50 is advancing and copper rose to its highest level since April, with sentiment across industrial metals bolstered by China's gradual reopening. The technology sector outperformed.

Meanwhile, the European Central Bank is set to announce an end to bond purchases this week and formally start the countdown to an increase in borrowing costs in July, joining global peers tightening monetary policy in the face of hot inflation. The ECB plans to strengthen its support of vulnerable euro area debt markets if they are hit by a sell-off.

The UK's equity benchmark climbed more than 1% as traders returned after a four-day break.

The US jobs report on Friday quelled some concern that the world's largest economy is slowing too sharply. However, it also strengthened the view that the Fed would continue to raise rates to fight inflation. Investors bought stocks last week, with US stocks showing gains for the fourth straight week. Bank of America strategists reported, citing global EPFR data, that the inflow of funds as the bear market rally continued.

The Russian stock market has been falling for the seventh day in a row amid excessive pressure from the Western sanctions:

Key events to watch this week:

• Reserve Bank of Australia policy decision Tuesday
• World Bank's "Global Economic Prospects" report Tuesday
• Reserve Bank of India rate decision Wednesday
• European Central Bank rate decision, Christine Lagarde briefing, Thursday
• US Consumer Price Index, University of Michigan consumer sentiment Friday
• China Consumer Price Index, PPI Friday