Wall Street stocks surged Monday amid increased optimism about trade negotiations while European equities retreated in part due to a strengthening euro.

The Dow jumped 2.84 percent. The S&P 500 increased 2.72 percent. And the Nasdaq was up 3.26 percent. US stocks regained their swagger after a two-day dive last week spurred by President Donald Trump's announcement that he was imposing tariffs of up to $60 billion on Chinese imports. Analysts were heartened by a Wall Street Journal report that said the two countries were actually in talks that could help resolve the conflict. In Europe, equity markets in London, Paris and Frankfurt all fell. This was following news that the United States and its European allies expelled dozens of Russian diplomats in a coordinated action against Moscow. Britain's FTSE 100 lost 0.48 percent. The German DAX dropped 0.83 percent. And the French CAC 40 fell 0.57 percent. All three were also penalized by the strength of the euro and pound against the dollar.