Wall Street stocks finished solidly higher Wednesday, with the Nasdaq surging to a fresh record as the US and the European Union announced an agreement on their trade dispute.
The Dow Jones Industrial Average ended up 0.7 percent at 25,414.10.
The broad-based S&P 500 advanced 0.9 percent to 2,846.07, while the tech-rich Nasdaq Composite Index jumped 1.2 percent to 7,932.24, topping a record set last week by about 77 points.
Markets had been eyeing talks between US President Donald Trump and EU Commission chief Jean-Claude Juncker at the White House held as the US had threatened deep tariffs on imported cars.
Trump, at a brief White House ceremony shortly after the market closed, said the two side reached a ‘new phase’ in US-EU relations and that the two sides would work toward ‘zero tariffs’ on non-auto industrial goods.
Juncker said he ‘made a deal’ with Trump on trade.
‘We have identified a number of areas to work together,’ Juncker said.
Stocks began rallying after a Wall Street Journal report about 30 minutes before the closing bell that said that Trump had secured concessions from Europe to avert a trade war.
‘We need the details, but it seems that we avoided the war,’ said Gregori Volokhine, president of Meeschaert Capital Markets. 
Worries about the trade conflict battered auto stocks Wednesday, especially after both General Motors and Fiat Chrysler cut their full-year forecasts.
GM fell 4.6 percent, while FCA plummeted 11.9 percent. 
Ford, which was scheduled to report earnings later Wednesday, dipped 0.6 percent.
AT&T dropped 4.5 percent after reporting a 2.1 percent drop in second-quarter revenues to $39.0 billion in its first earnings report after completing the Time Warner acquisitions.
Coca-Cola gained 1.8 percent after reporting that second-quarter profits surged 69 percent to $2.3 billion as soda sales picked up in its home North American market.