Trade negotiators from China and the U.S. have narrowed some of their differences, The Wall Street Journal reported Tuesday.

The report, which cited sources, said the negotiators made progress on issues such as the purchase of U.S. goods and services. It also said that a follow-up conversation between Cabinet-level officials is expected later this month. However, the two sides are still not ready to reach a deal just yet.

Reuters later reported that a U.S. trade delegation member said talks with China would continue Wednesday.

Stocks rose sharply Tuesday on the Journal report, with the Dow Jones Industrial Average briefly up more than 320 points.

China and the U.S. have been engaged in a trade war since last year, with both countries issuing tariffs on billions of dollars worth of each other's goods. This has kept investors on edge as they gauge the confict's potential impact on corporate profits.

The reports also come after President Donald Trump tweeted that talks with China were going "very well."

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WATCH: Trade war adds to mounting pressure on Xi Jinping