(CNBC) Stocks rose on Friday as investors cheered potential progress in trade negotiations between China and the U.S.

The Dow Jones Industrial Average rose 336.25 points to 24,706.35, led by gains in UnitedHealth and Home Depot. The S&P 500 climbed 1.3 percent to 2,670.71, closing out of correction territory, as the materials and industrials sectors outperformed. The Nasdaq Composite advanced 1 percent to close at 7,157.23.

The major averages jumped to their highs of the day after sources told CNBC that China had offered a six-year increase in U.S. imports during recent trade talks. Bloomberg News reported on Friday that the deal would aim to reduce the annual U.S. deficit to zero by 2024.

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