"Had a very good telephone conversation with President Xi of China," Trump wrote on Twitter. "We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting."
Chinese state television said the presidents spoke during a phone call but didn't provide further details, Reuters reported.
Eight of the market sectors of the Standard & Poor's 500 rose on the day, with four of them rising well over 1%.
Industrials added nearly 1.9%, led higher by Boeing (BA). The aviation and defense giant jumped 5.4% after it secured an order for 200 of its 737 MAX jetliners. 3M (MMM) gained 3.1% while Caterpillar (CAT) advanced 2.4%.
Blue-chip Intel (INTC) rose 2.7%, pushing tech shares up more than 1.7%. Xilinx (XLNX) jumped 6.9% while Micron Technology (MU) added 5.7%.
Energy rose nearly 1.4% as crude-oil futures jumped. West Texas Intermediate rose 3.9% to $53.96 while international standard Brent gained nearly 2.1% to $63.20.
Chevron (CVX) rose 1.3% while ConocoPhillips (COP) added 1.4%. Apache (APA) gained 2.9%.
Consumer staples ended nearly 0.6% lower as Procter & Gamble (PG) slid 1.3%. Kellogg (K) fell 1.9%, and Campbell Soup (CPB) slipped 1.2%.
In corporate news, News Corp (NWS) jumped 4.7% after the media company said it was undertaking a strategic review of its News America Marketing business.
Lululemon Athletica (LULU) rose 2.6% as the athletic-apparel company introduced a personal-care product line.
In economic news, the pace of growth in US housing starts came in slightly ahead of analysts' estimates in May as lower mortgages and an easing in house-price appreciation drew greater interest from prospective homeowners, according to government data.
The Dow Jones Industrial Average rose 1.35% while the S&P 500 advanced nearly 1%. The Nasdaq Composite added nearly 1.4%.
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