But as the market continues its rally, Thomson Reuters Stocks Buzz editor Terence Gabriel says it could be at risk of a pullback.
The benchmark index was on track to close out its 10th winning week in the last 11. The benchmark index hit record highs for the past five consecutive sessions in its longest streak since January 2018.
Losses in banks, industrial stocks, household goods makers and technology companies helped pull the market lower.
Xi stressed the phase one economic and trade deal between China and the United States benefits both sides and the whole world, and noted that the two countries reached the phase one agreement on the basis of the principle of equality and mutual respect.
"It's just a benign continuation of the year-end rally based on no compelling reasons to scare people into selling", Globalt Investments senior portfolio manager Tom Martin said. The Nasdaq Composite Index increased 59.48 points, or 0.67 percent, to 8,887.22. The Russell 2000 index of small-cap stocks added 0.3% to 1,667.09.
Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., June 24, 2019.
The US and China last week agreed to cut tariffs on some of each other's goods and postpone other tariff threats.
"This is a boost to Mr. Trump, who considers it to be his signature trade deal, and reduces one source of uncertainty for firms, but it is dominated by the ongoing uncertainty over US-China trade talks", wrote analysts at UniCredit, in a Friday research note.
A batch of encouraging earnings reports from several big companies helped keep investors in a buying mood.
With no major catalysts expected and back-to-back shortened trading weeks coming up, USA market activity is likely to be light as many traders pause to celebrate the holidays. That is making up for hesitance by businesses to spend, and it's helping to keep the economy growing at a moderate pace.
Consumer last month spending rose 0.4 percent from October, the strongest growth in four months, US Department of Commerce data showed. The increase in spending came as incomes rose 0.5% from a month earlier.
They offset gains in real estate, communication services, health care and elsewhere in the market.
Cruise operators were among top percentage gainers in the S&P 500, led by Carnival Corp, which jumped 7.6 per cent after forecasting a 2020 profit largely above estimates.
The S&P 500 rose for a fourth straight week, gaining 1.7 percent for the week, its biggest weekly gain since early September.
The February crude contract dropped 74 cents to US$60.44 per barrel and the January natural gas contract gained 5.5 cents to roughly US$2.33 per mmBTU. Brent crude, the worldwide standard, slid 40 cents to $66.14 per barrel.
The dollar declined slightly to 109.31 Japanese yen and the euro moved lower to $1.1100. The euro weakened to $1.1115 from $1.1147.
European stock markets closed broadly higher.