Brendan McDermid | Reuters
Traders working on the floor of the New York Stock Exchange, (NYSE) in New York.
This week's gains were largely led by tech shares, as the sector surged 5 percent. The tech sector also became the best-performer of 2019. Nvidia is the best-performing stock in the sector, rising more than 12 percent while fellow semiconductor stocks like Broadcom and Lam Research also known as rose sharply this week.
Semiconductor shares rose broadly on Friday, as the VanEck Vectors Semiconductor ETF (SMH) climbed more than 2 percent. Broadcom shares led the gains, rising more than 9 percent after the company reported better-than-expected quarterly earnings.
Chinese Vice Premier Liu He spoke via telephone with U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer, Xinhua news agency reported Friday. The report, according to The South China Morning Post, said: "The two sides have further made progress on the text of the two sides of the trade agreement."
The news comes after the CNBC reported Thursday that Chinese negotiators suggest combining a state visit to the US with the signing of a trade deal. Beijing wants a deal to be ironed out before President Xi Jinping meets with U.S. President Donald Trump.
"US-China trade negotiations will likely reach a temporary deal, transforming future negotiations into a framework to monitor China's compliance with intellectual property policies," Alberto Gallo, head of Alibris Investments, wrote in a note. He added, however, that "binary events" like this "may not translate into tail risks."
AT & T shares rose 0.8 percent after Raymond James upgraded the telecommunications giant to outperform market, citing an attractive valuation relative to rival Verizon , Frank Louthan said in a note.
-CNBC's Sam Meredith and Spriha Srivastava contributed to this report.