Here's what happened to the stock market on Thursday

Traders work on the floor of the New York Stock Exchange (NYSE) on July 10, 2019.
Spencer Platt | Getty Images

Dow Jones Industrial Average jumps 220 points

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.

Trump: Trade deal is 'very close'

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.

Chip stocks and banks rise

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%.

What happens next?

Retail sales numbers are scheduled for release Friday as well as import prices data. Read more here.

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