The Dow and broader U.S. stock market surged to more than three-month highs Friday following the release of a White House memo that described trade talks with China as “detailed” and “progressive.” Negotiators from the Trump administration and China are scheduled to resume talks next week in Washington.

DOW SPIKES; S&P 500, NASDAQ FOLLOW

The Dow Jones Industrial Average surged by as much as 368 points Thursday morning, as traders overcame a volatile pre-market session for U.S. stock futures. At last check, the Dow 30 index was trading near its peak, having gained 365 points, or 1.4%, to 25,804.44. The index is on track for its highest settlement since early November.

The broad S&P 500 Index rose 0.9% to 2,768.99. Financials led ten of 11 primary sectors higher through the midday session. The S&P 500’s financial index is currently riding gains of 1.7%. Energy companies added 1.1% on average. Consumer staples and materials each rose by at least 1%.

Shares of information technology companies were only modestly higher, while communication services flat-lined. As a result, the technology-focused Nasdaq Composite Index rose just 0.5% to 7,460.75.

A measure of implied volatility known as the CBOE VIX approached its lowest levels since October, as Wall Street bounced back from a tumultuous fourth quarter. VIX, which trades on a scale of 1-100, reached a session low of 15.04. It was last down 6.9% at 15.10.

TRUMP DECLARES NATIONAL EMERGENCY

Stock futures were under pressure ahead of the opening bell as investors pondered President Trump’s plan to declare a national emergency. Trump officially invoked the declaration Friday morning to shore up funding for his proposed border-wall with Mexico.

The move comes days after congressional leaders agreed on a new budget deal that included only a fraction of the $5.7 billion Trump had requested for his new barrier. By invoking a national security, Trump seeks to secure the full funding needed to erect a 234-mile steel barrier along the U.S.-Mexico border.

On Thursday, the Senate and House of Representatives approved seven spending bills totaling $333 billion. Only $1.38 billion was granted for new border funding.

U.S.-CHINA TRADE DEAL IN THE WORKS?

U.S.-China trade negotiations wrapped up on Friday following two days of intense dialogue that aimed to tackle a laundry list of unresolved issues. Both sides have agreed to continue negotiating next week in Washington.

The White House issued a statement Friday morning describing the negotiations as “detailed and intensive,” which led to “progress between the two parties.”

“Both sides will continue working on all outstanding issues in advance of the March 1, 2019, deadline for an increase in the 10 percent tariff on certain imported Chinese goods,” the statement read, according to MarketWatch.

President Trump recently said he is willing to let the deadline “slide” if both sides were close on a new agreement.

Donald Trump Image from Shutterstock. Chart from TradingView