The Dow Jones Industrial Average reached a record high yesterday after China said the world’s two largest economies had agreed to remove existing trade tariffs.The 30-stock measure climbed 260 points as trade bellwethers Caterpillar and Boeing rose.Chip stocks such as Micron Technology, Advanced Micro Devices and Skyworks Solutions all gained more than 1 per cent. Apple shares advanced 0.9 per cent.

The S&P 500 also hit an all-time high, rising 0.6 per cent as the financial and energy sectors advanced. The Nasdaq, meanwhile, rose 0.75 per cent to a record.

Gao Feng, a ministry spokes-person for China’s Commerce Ministry, said that both sides had agreed to simultaneously cancel some existing tariffs on one another’s goods, according to the country’s state broadcaster. The ministry spokesperson said that both sides were closer to a so-called “phase one” trade agreement following constructive negotiations over the past two weeks.

On the data front, the latest weekly jobless claims numbers came in at 211,000, down slightly from 218,000 in the previous week.

In corporate news, Booking Holdings, Disney and Activision Holdings are the companies set to report their latest quarterly figures after market close.Qualcomm shares jumped more than seven per cent after reporting Wednesday quarterly results that topped analyst expectations. The company’s results were driven by strength in Qualcomm’s licensing business.