The Dow Jones Industrial Average and Nasdaq closed at record highs for the second straight day Tuesday amid growing optimism about the trade negotiations between the United States and China.
The Dow ended up 30 points, or 0.11%, while the tech-heavy Nasdaq was up 1.48 points, or 0.02%. The S&P 500 dropped 0.1% Tuesday after also closing at a record high Monday.
The rally follows comments from Commerce Secretary Wilbur Ross that negotiations between the U.S. and China over a phase one trade deal are progressing.
“I’m reasonably optimistic we can get something done and move forward toward a completion of phase one,” he told reporters.
The agreement was supposed to be signed at this month’s Asia-Pacific Economic Cooperation meetings in Chile, but the forum was canceled amid protests in the country. Representatives from the U.S. and China are searching for a new location, and the White House said last week it expects the deal to be signed within the same time frame.
But before the partial trade pact can be signed, Beijing said it wants the president to lift tariffs on Chinese products. China is urging the U.S. to cancel the 15% tariffs that hit $112 billion worth of Chinese goods on Sept. 1 and cancel a forthcoming round of 15% duties scheduled to take effect on Dec. 15.
Trump already called off a planned tariff increase on Oct. 15.
The headway on trade talks lifted the Dow to an all-time high Monday after the S&P 500 and Nasdaq closed at record levels Friday following stronger-than-expected jobs gains in October.
