Rally over Canada deal fades

New York

Stocks barreled higher in the early going Monday after the U.S. and Canada agreed to a new trade deal, but the rally ran out of momentum later in the day, leaving major indexes mixed.

Oil prices neared four-year highs and smaller companies suffered their worst losses in three months.

Large industrial and basic materials stocks made big gains, and energy companies rose as crude oil and natural gas reached their highest prices in years. Car companies also rose as investors anticipated that tariffs on imported cars are less likely now.

Many investors saw the new trade deal, the United States-Mexico-Canada Agreement, as an update of the 1994 North American Free Trade Agreement, not a major overhaul.