Wall Street jumps, but ends off highs

US stocks ended more than 1 percent higher on Friday, although well off the day’s highs after the announcement of a partial trade deal between the US and China.

Indices cut their gains late in the session as the deal was announced amid worries over the possibility of further flare-ups before the agreement is finalized, strategists said.

US President Donald Trump, speaking to reporters after talks with Chinese Vice Premier Liu He (劉鶴), said that the US and China had come to a substantial phase-1 trade deal, reaching agreement on intellectual property, financial services and big agricultural purchases.

The preliminary, partial deal was the biggest step toward resolving a 15-month tariff dispute between the world’s two largest economies.

The market had risen in recent days due to optimism for an agreement and the S&P 500 was up as much as about 1.9 percent earlier in the session.

“The main reason the market rallied the past couple of days was hope that there would be an agreement, even a small agreement, and that this trade war would be done for the foreseeable future,” said Michael O’Rourke, chief market strategist at JonesTrading Institutional Services LLC in Greenwich, Connecticut.

“It looks like while there is an agreement, this is still going to … drag out and be an issue,” O’Rourke said.

Top-level discussions between the two countries concluded their second day on Friday.

Cyclicals were among the day’s best-performing groups, with the S&P industrial index up about 2 percent ahead of the third-quarter earnings season, which is to begin next week.

The Dow Jones Industrial Average rose 319.92 points, or 1.21 percent, to 26,816.59, the S&P 500 gained 32.14 points, or 1.09 percent, to 2,970.27 and the NASDAQ Composite added 106.27 points, or 1.34 percent, to 8,057.04.

Indices also gained for the week,

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