Dow, S&P 500 end at records on US-China trade deal optimism

The Dow and S&P 500 finished at fresh records on Thursday following Chinese comments that pointed to a potential removal of tariffs in the long-running trade war with the United States.

The Dow Jones Industrial Average ended up 0.7 per cent at 27,674.80, about 180 points above the all-time high of two days ago.

The broad-based S&P 500 gained 0.3 per cent to 3,085.18, while the tech-rich Nasdaq Composite Index advanced 0.3 per cent to 8,434.52.

Investors welcomed statements from Chinese officials that the two sides have agreed a plan to remove tariffs imposed on goods in stages if a preliminary "phase one" agreement announced last month is finalised.

However, the White House did not publicly comment on the claim and gains moderated following a Reuters report that described opposition to rolling back tariffs within the White House.

The pullback revealed continued doubt about a US-China trade agreement despite more conciliatory signs from both sides, said Karl Haeling of LBBW.

"Until this thing is nailed down, there is still a lingering concern that it could fall apart," Haeling said.

"You're one tweet away, so to speak."