Stocks closed higher on Friday, boosted by bank shares, as investors looked ahead to a key meeting between President Donald Trump and Chinese President Xi Jinping. Wall Street also wrapped up its best first half to a year in two decades.

The Dow Jones Industrial Average rose 73.38 points to 26,599.96 as J.P. Morgan Chase shares outperformed. The 30-stock index rallied more than 7% this month, notching its biggest June gain since 1938.

The advanced 0.6% to 2,941.74, led by the financials sector. For the month, the S&P 500 jumped 6.9%, its best June performance since 1955. The broad index is also up more than 17% this year, marking its biggest first-half gain since 1997.

The Nasdaq Composite gained 0.5% to end the day at 8,006.24. The tech-heavy index also rallied 7.4% this month.

J.P. Morgan Chase jumped 2.7% while Citigroup, Bank of America, Goldman Sachs and Wells Fargo all closed more than 2% higher. Morgan Stanley shares advanced 0.7%. Their gains come after they passed the Fed's annual stress test and got approval to boost dividends and share repurchase programs. Goldman hiked its quarterly dividend by nearly 50% while J.P. Morgan raised its dividend by 10 cents.

But Wall Street's gains were kept in check as traders awaited the Trump-Xi trade meeting. The two leaders are scheduled to meet Saturday at the G-20 summit in Osaka, Japan.

"All eyes are on the G-20. It's all anyone's been talking about and focuses on all week," said James Masserio, head of equity derivatives trading of the Americas at Societe Generale. "We're definitely seeing a bid to short-term volatility. The market is bracing for a move one way or another."

"There's a pretty healthy premium built into short-term options," Masserio said. "Part of that premium is this 50-50 coin flip where you could get something that's a surprise step in the right direction or you come out with a whole bunch of nothing. Either way, the market is going to pick a short-term direction" after the G-20.