Stocks jump after US, China agree to tariff rollback if phase one comes together

U.S. stocks rallied on Thursday after the U.S. and China agreed to roll back tariffs in the event a phase one trade deal is reached, FOX Business has learned.

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While the Dow Jones Industrial Average, the S&P 500 and the Nasdaq fell from session highs, all maintained record levels. As investors loaded up on stocks, they dumped bonds driving the yield on the 10-year note up nearly 8 basis points to 1.917 percent.

TickerSecurityLastChangeChange %
I:DJIDOW JONES AVERAGES27934.02-102.20-0.36%
SP500S&P 5003120.18-1.85-0.06%
I:COMPNASDAQ COMPOSITE INDEX8570.658078+20.72+0.24%

"In the past two weeks, lead negotiators have had serious and constructive discussions on resolving issues of core concern," Chinese Ministry of Finance spokesperson Gao Feng said in a statement out early Thursday.

"Both sides agreed to remove the additional tariffs imposed in phases as progress is made on the agreement. If China and the US reach a phase one deal, both sides should roll back existing additional tariffs in the same proportion simultaneously."

Earlier in the session, President Trump celebrated the record highs in a tweet.

Industrial bellwethers Caterpillar and Boeing both gained amid the seemingly positive news on the trade front.

TickerSecurityLastChangeChange %
CATCATERPILLAR INC.143.18-0.41-0.29%
BABOEING COMPANY367.00-2.46-0.67%

In earnings news,  Pacific Gas and Electric shares fell after the utility announced a $2.5 billion third-quarter write-down for damage claims related to wildfires in Northern California.

Roku was under pressure falling over 16 percent after reporting third-quarter costs surged as it made efforts to juice subscriber growth.

Meanwhile, Qualcomm shares gained over 6 percent after the manufacturer of digital wireless communications equipment said strength in its licensing business delivered better-than-expected results.

TickerSecurityLastChangeChange %
PCGPG & E CORP.6.84-0.25-3.53%
ROKUROKU INC153.91-6.21-3.88%

U.S. economic data out Thursday was light, with initial jobless claims coming in at 211,000, below the 215,000 that economists surveyed by Refinitiv were expecting.

Elsewhere, commodities were mixed, with gold down 0.48 percent at $1,486 an ounce and West Texas Intermediate crude oil up 1.83 percent at $57.38 a barrel.

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FOX Business' Ken Martin and The Associated Press contributed to this report.