The Dow gained 220.75 points, or 0.79%, to 28,132.05. The S&P 500 rose 0.86% to end the day at 3,168.57. The Nasdaq Composite advanced 0.73% to 8,717.32. Stocks hit record highs on hopes that a U.S.-China trade deal would be reached, avoiding another escalation in the trade war between the two countries.
Stocks rallied to record highs after President Donald Trump tweeted China and the U.S. were "very close" to reaching a "big deal" on trade. CNBC later learned through sources that a "phase one" trade deal had been agreed to in principle. The news comes ahead of a Sunday deadline. If a deal is not reached by then, additional U.S. tariffs on Chinese imports would take place. Signing this deal would lift a major cloud of concern from Wall Street.
Semiconductor stocks such as Micron Technology and Nvidia gained 3.47% and 3.21%, respectively, to lead Thursday's gains. Bank shares such as J.P. Morgan Chase, Citigroup and Bank of America also contributed to the move higher. J.P. Morgan rose 2.86% while Citigroup rose 1.99% and Bank of America climbed 3.09%.