Dow Jones Industrial Average rallies 319 points
The Dow jumped 319.92 points, or 1.21% to 26,816.59. The S&P 500 gained 1.09% to close at 2,970.27. The Nasdaq Composite advanced 1.34% to 8,057.04. The major indexes rallied to end the week as the Trump administration struck what it called a "substantial" trade deal with China.
Trade progress boosts stocks
President Donald Trump said China and the U.S. agreed to the first phase of a broader trade deal. He said the terms of that phase will be written over the next three weeks. Stocks hit their session highs on that comment, with the Dow briefly rallying more than 500 points.
As part of this first phase, China will buy between $40 billion and $50 billion worth of U.S. agricultural products. Trump also said the deal includes agreements on foreign-exchange issues with China. In exchange, the U.S. agreed to hold off on tariff hikes that were set to take effect Tuesday. However, the indexes fell from their highs before the close after U.S. Trade Representative Robert Lighthizer said a decision had not been made over additional tariffs set for December.
Apple hits all-time high, Roku surges
Apple shares climbed 2.66% to hit a record high. With Friday's gains, Apple is up around 50% year to date. Roku surged 4.71% after Citadel Securities disclosed a 5% stake in the streaming-device maker. Roku also got a boost from an RBC Capital Markets upgrade.
What happens next?
Investors will turn their attention to the corporate earnings season as a slew of major banks including Goldman Sachs, J.P. Morgan Chase and Citigroup are scheduled to report their quarterly results.