The U.S. will not raise tariffs on Chinese goods as planned Tuesday in return for a major increase in farm product purchases by the Chinese side.
"Those were sort of the two biggest economic uncertainties facing the market", said Jerry Lucas, senior trading strategist at UBS Global Wealth Management, of USA and China trade and Brexit.
"There remains significant work ahead to address numerous most important U.S. trade and investment priorities", Myron Brilliant, executive vice president of the U.S. Chamber of Commerce, said in a statement.
Stocks ended higher Friday after President Donald Trump said China and the US reached the first phase of a substantial trade deal that delays tariff hikes that were set to kick in next week.
Other issues, such as allegations over China's use of trade secrets, will be discussed in later negotiations, the AP said. On Sept. 1, Washington hit Beijing with a 15% levy on $112 billion worth of goods, the first portion of the fourth tranche of tariffs set to be implemented by the U.S.
China, meanwhile, said it would increase purchases of US agricultural products.
"I don't think it should be a problem getting it papered", Mr. Trump said. Trump also said the deal includes agreements on foreign-exchange issues with China.
With Chinese Vice Premier Liu He sitting across a desk from him in the Oval Office, Trump told reporters that the two sides were very close to ending their trade dispute.
The S&P index recorded 26 new 52-week highs and no new low, while the Nasdaq recorded 42 new highs and 38 new lows.
However, the interim deal reached on Friday will see planned U.S. tariff hikes cancelled, settle some questions about currency exchange rates and reverse China's pledge not to buy United States agricultural products.
"Big day of negotiations with China", he tweeted.
Earlier Friday, China announced a timetable for carrying out a promise to allow full foreign ownership of some finance businesses, starting with futures traders on January 1, as Beijing tries to make its slowing economy more competitive and efficient. Trump launched a tariff campaign early previous year as part of a strategy to end China's decades-long unfair trade practices.
China's securities regulator on Friday unveiled a firm timetable for scrapping foreign ownership limits in futures, securities and mutual fund companies for the first time.
Business groups expressed relief that the negotiations appeared to be making progress after more than a year of sputtering, yet they acknowledged that the agreement fell short of the sweeping deal that Trump had promised.
The trade war between the world's top two economies, now in its 15th month, has sent shockwaves through the global economy.
Similarly, American Apparel and Footwear Association president and CEO Rick Helfenbein said the organization "welcomes the president's decision" but added that "the reality is that everything now being hit with punitive tariffs is still being charged".
The US commerce department said last week it will blacklist 28 Chinese entities it says are implicated in rights violations and abuses in China's Xinjiang region. He spoke after talks with Chinese Vice Premier Liu He.