U.S. stocks climbed on Monday to close at a record and European equity markets also moved higher as a jump in oil prices helped spur gains in the energy sector.
Among U.S. equities, the S&P energy index <.SPNY> gained 2.2 percent as the top-performing sector, closing at its highest level in 16 months.
"The post-election rally is continuing," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama. "There was some concern that rates might rise too far, but it looks like they may have slowed down a little bit."
The Dow Jones industrial average <.DJI> rose 88.76 points, or 0.47 percent, to 18,956.69, the S&P 500 <.SPX> gained 16.28 points, or 0.75 percent, to 2,198.18 and the Nasdaq Composite <.IXIC> added 47.35 points, or 0.89 percent, to 5,368.86.
The levels marked a record close for each of the three major Wall Street indexes, but market participants cautioned that volume was likely to be light this week ahead of the U.S. Thanksgiving Day holiday on Thursday.
The climb in oil lifted European markets, with the STOXX Europe oil & gas index <.SXEP> up 2.1 percent. Europe's index of leading 300 shares <.FTEU3> closed up 0.3 percent. MSCI's all-country world index <.MIWD00000PUS> advanced 0.8 percent.
The dollar <.DXY> eased 0.3 percent to 100.89 against a basket of major currencies, pausing after a 10-day streak in which it gained nearly 5 percent. That rally was fuelled by expectations of policies by U.S. President-elect Donald Trump that would lead to interest rate increases.
In similar fashion, U.S. Treasury yields, which have soared in the wake of the U.S. election, declined from one-year highs as the recent sell-off tempted some new buyers. Benchmark 10-year note yields
The pause in the U.S. dollar's rally helped gold