Stocks jumped on Thursday as sources told the media a so-called phase-one trade deal between the U.S. and China has been agreed to in principle.
The Dow Jones Industrials rocketed 220.75 points to close out Thursday at 28,132.05.
The S&P 500 gained 26.94 points to 3,168.57, notching a record close.
The NASDAQ hurtled higher 63.27 points to 8,717.32, also posting an all-time closing high.
U.S. negotiators have the terms of the deal ready for President Donald Trump’s review. Reports circulated earlier in the day that said U.S. negotiators are offering to cancel new China tariffs and reduce existing levies on Chinese goods by up to 50% on $360 billion worth of imports.
The latest trade news comes ahead of a key Sunday deadline. If an agreement is not reached by Sunday, additional U.S. levies on Chinese products will take effect.
Caterpillar shares jumped 1.9% on Thursday while Micron Technology advanced 3.5%.
J.P. Morgan Chase, Bank of America and Citigroup all traded at least 1.6% higher.
Figures released Thursday by the U.S. Labor Department showed weekly jobless claims jumped last week by 49,000 to 252,000, their highest level since the week ended Sept. 30, 2017.
Prices for the 10-Year U.S. Treasury tumbled sharply raising yields to 1.90% from Wednesday’s 1.80%. Treasury prices and yields move in opposite directions.
Oil prices restocked 55 cents to $59.31 U.S. a barrel.
Gold prices slipped 40 cents at $1,474.60 U.S. an ounce.
