U.S. stocks on Monday built on last week’s advance, helped by deal news and waning Ukraine-Russia tensions. A better-than-expected reading on the housing market also boosted sentiment and kicked off a big week for economic data.

The S&P 500 (SPX) rose 13 points, or 0.7%, to 1,968, adding to its 1.2% weekly gain last week. The Dow Jones Industrial Average(DJI) jumped 130 points, or 0.8%, to 16,793, while the Nasdaq Composite (RIXF) climbed 33 points, or 0.7%, to 4,498. The tech-heavy Nasdaq traded as high as 4,499.52 — a new intraday high for the year and a level last seen in March 2000.

“Wall Street is once again coming up to tackle technical resistance, but with the momentum built up over the last week, conversations are likely to turn towards when, not if, it can tackle the 17,000 level again,” said Alastair McCaig, market analyst at IG, in a note.

Helping out, he said, was the bounce off session lows seen Friday, when the Dow industrials (DJI) recovered from a triple-digit fall. Also read: Where Soros and other big investors are putting their money right now

Foreign ministers from Ukraine and Russia met over the weekend, and an agreement was reached over a convoy of what Russia says is humanitarian aid. However, no progress was made toward a cease-fire in Eastern Ukraine. The news pushed the Europe Stoxx 600 near August highs on Monday.

“The political concerns that whipped markets around on Friday subsided over the weekend with Ukraine and Russia apparently talking and making some progress,” said Colin Cieszynski, chief market strategist at CMC Markets, in emailed comments. He also noted that “in Iraq, Kurdish forces regained control of the key Mosul Dam from ISIS.”

On the economic front, the NAHB/Wells Fargo Housing Market Index for August came in at 55, its highest level in seven months. Economists polled by MarketWatch had expected a reading of 53. This week also should bring data on housing starts and consumer prices on Tuesday, as well as minutes from the last Federal Open Market Committee meeting on Wednesday.

Federal Reserve Chairwoman Janet Yellen will give a speech Friday at the annual Fed summit in Jackson Hole, Wyo. Yellen is expected to say there’s still slack in the job market, and she isn’t likely to shift the easy-money stance of the Fed, Jan Hatzius, chief economist at Goldman Sachs, said in an interview with MarketWatch.

Dollar General makes play for Family Dollar

Shares of Dollar General Corp.(DG) rose 9%, faring best in the S&P 500, after offering to buy rival Family Dollar Stores Inc. (FDO) in an all-cash deal worth $78.50 a share. That’s higher than Dollar Tree Inc.’s (DLTR) cash-and-stock bid in July of $74.50 a share. Family Dollar jumped 4% for the second-best gain in the S&P 500. (Read more about the day’s notable moves in the Movers & Shakers column http://www.marketwatch.com/story/jinkosolar-urban-outfitters-stocks-to-watch-monday-2014-08-17.)

In commodity markets, oil prices(CLU4) fell after Iraqi Kurds had recaptured a large chunk of the biggest dam in the country from Islamist militants, with help from U.S. air power.