Stocks surge to new records ahead of signing of U.S.-China trade pact

U.S. stock indexes traded solidly higher Wednesday afternoon, though the major benchmarks were trading off session highs, after President Donald Trump signed the first phase of a trade pact with China to cement a deténte in trade aggressions between the globe’s largest superpowers, which has unsettled markets world-wide.

How are benchmarks performing?

The Dow Jones Industrial Average DJIA, +0.35% rose 121 points, or 0.4%, at 29,061, while the S&P 500 index SPX, +0.13% gained 7 points, or 0.2% to 3,290, while the Nasdaq Composite Index COMP, +0.10% gained 21 points, or 0.2%, to trade at 9,271.

All three major benchmarks set record intraday highs.

At session highs on Wednesday, the Dow was up 187.92 points, or 0.6%, the S&P 500 had gained 15.51 points, or 0.5% and the Nasdaq Composite was up 47.49 points, or 0.5%.

What’s drove the market?

Trump and Chinese Vice Premier Liu He signed a long-awaited preliminary trade pact in the East Room of the White House White House Wednesday, and investors have been heartened by some of the details of the deal released by the Trump administration in the hours leading up to the signing ceremony.

White House economic adviser Larry Kudlow said that the deal includes promises by the Chinese to increase their purchases of U.S. agricultural, manufacturing, and energy products, along with higher purchases of services, by more than $200 billion over the next two years.

However, a text of the trade agreement hasn’t yet been released.

“Between the two great nations, nothing like this has ever happened before,” Kudlow said in an interview with CNBC. He added that the deal also involves changes to Chinese regulation and criminal codes regarding intellectual property theft and counterfeiting, that he expects will reduce such incidents going forward. “We’ve set up a bilateral process of resolution

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