All three indexes are on track for weekly gains.
European markets were also trading in the green, and Asian markets closed higher.
“US-China relations are not entering a period of calm by any means, but this latest breakthrough suggests both sides don’t want to mess with their respective fragile economic recoveries,” said Edward Moya, senior markets analyst at Oanda, in a note to clients.
Making sure the phase one deal doesn’t fall apart is what matters the most — so as long as that’s a given, the focus on trade relations could be a short-lived catalyst for the market, according to Mark McCormick, global head of FX strategy at TD Securities.
In line with investors’ appetite for riskier assets on Friday, the US dollar slipped against its major rivals, and the ICE US Dollar Index was down 0.1%.
Similarly, safe haven US Treasury bonds slipped, and the 10-year yield rose to 0.73%. Bond yields and prices move in opposition to one another.
Oil prices climbed higher, with US oil up 3.5% to $40.18 a barrel. Brent, the global oil benchmark, was up 2.6% at $42.57 a barrel.