“Markets expect a deal by the end of March, but the key here will be whether the deal results in the removal of all tariffs,” Tom Essaye, founder of The Sevens Report, told CNBC. “The reports this morning imply that might happen, but it will have to become reality for US-China trade to provide a sustainable positive catalyst for stocks.”

Furthermore, investors are now looking at economic data to affirm further growth ahead.

“As financial markets have already taken note of these positive developments [in trade], the onus is now on the economic indicators to play their part by confirming our expectations of this growth rebound,” Chetan Ahya, chief economist at Morgan Stanley, said in a note.

The Commerce Department also revealed construction spending slipped 0.6% in December, compared to economists’ forecasts of a 0.2% gain, CNBC reports.

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