Although the deal leaves a lot to be desired by Beijing, the average Chinese should be able to benefit from the trade pact.
The pan-European STOXX 600 index .STOXX also hit a record high and the landslide election victory last week by British Prime Minister Boris Johnson drove the benchmark FTSE 100 .FTSE to its biggest single-day gain in nearly a year.
KEEPING SCORE: The S&P 500 was up 0.9% as of 1:15 p.m. Eastern time. It's on pace for its fourth straight gain. In an interview she upgraded China's GDP forecast, saying she expects the agreement between the two countries to boost China's growth to around 6% next year, up from the IMF's previous estimate of 5.8% made in October.
WASHINGTON/BEIJING-U.S. President Donald Trump's top trade negotiator praised a "phase one" U.S.
Still, investors remained cautious as growth in China is expected to slow further next year, with the government likely to set its economic growth target at around 6% in 2020 compared with this year's 6-6.5%. -China trade war woes after interim trade deal between the world's two biggest economies and refrained from slapping fresh tariffs on each other's goods on Sunday.
The U.S. -China trade relations have always been a subject for criticism in Trump's campaign - both pre-election and post-election.
'By outlawing an extension, it leaves very little time in which to agree a comprehensive free trade agreement with the European Union and means the clock is now ticking down to a firm cliff-edge next December.
Benchmark 10-year notes last fell 19/32 in price to yield 1.8853%. Bank of America and Wells Fargo each rose 0.8%. Financial stocks in the S&P 500 overall gained 0.8%.
Stocks that pay big dividends, meanwhile, were lagging the market because higher interest payments for bonds and other investments can lure away some income-seeking investors. Australia's S&P/ASX 200 led the way in which it jumped 1.63%, whereas shares in Taiwan added 0.22%. Oil and gas producer EOG Resources climbed 2.7%, while Exxon Mobil added 1.1%.
ENERGY: Benchmark U.S. crude lost 13 cents to $59.94 per barrel in electronic trading on the New York Mercantile Exchange.
Brent crude oil futures settled up 12 cents to US$65.34 a barrel, while West Texas Intermediate crude gained 14 cents to settle at US$60.21 a barrel.
Health care stocks also notched solid gains. Micron Technology jumped 4.1% and Broadcom rose 3%. Technology stocks, which have often swung with every shift in the U.S. -China trade war because of how much business the companies do in China.