Top negotiators from the U.S. and China held another round of discussions on Oct. 25 and were close to completing parts of a trade agreement, multiple news agencies reported, citing a statement from the Office of the U.S. Trade Representative.
U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin spoke with Chinese Vice Premier Liu He over the phone regarding the "phase one deal" reached by the two sides on Oct. 11. President Donald Trump said back then that the agreement would take five weeks to write.
"They made headway on specific issues and the two sides are close to finalizing some sections of the agreement," the USTR said in a statement, according to Reuters and CNBC. The USTR added that deputy-level discussions would continue and that "principals will have another call in the near future."
Stocks rallied following the news, with the S&P 500 Index touching an intraday high of 3,027.39, before paring gains. The index set intraday and closing records of 3,027.98 and 3,025.86, respectively, on July 26.
Reuters earlier reported, citing people briefed on the matter, that U.S. and Chinese trade officials would discuss plans for Beijing to buy more U.S. farm products, in exchange for the U.S. cancelling a number of proposed and existing tariffs on Chinese goods.
The U.S. and China reached a partial deal on Oct. 11 to pause elements of their ongoing trade war. As part of that agreement, Trump agreed to delay the tariff hike on $250 billion of imports from China that was slated to go into effect Oct. 15.