Traders work on the floor at the New York Stock Exchange. Eduardo Munoz | Reuters

The major averages have been on fire over the past month as optimism around U.S.-China trade talks increases. The Dow and S&P 500 both up more than 4% in that time while the Nasdaq is up more than 5%. On Tuesday, President Donald Trump said negotiators were close to reaching an initial trade deal. Trump's upbeat comments on trade followed a phone call between officials from the U.S. and China. The negotiators agreed to keep working on remaining issues. Those comments came after Trump said last month that a "phase one" trade deal was in the works.

Trade deal assumed