Markets overseas rose after economic adviser Larry Kudlow late Thursday cited what he called very constructive talks with Beijing about ending trade tensions.
"We're getting close," Kudlow said.
MSCI's gauge of stocks across the globe gained 0.76%, lifting it to within 1% of an all-time high set in January 2018. Its emerging markets index rose 0.67%.
In Europe, the pan-regional STOXX 600 index closed 0.4% higher, close to four-year highs it hit last week. The FTSEurofirst 300 index of leading shares added 0.33%.
On Wall Street, the S&P 500 posted its sixth straight week of gains in a rally that has lifted the benchmark index 8% since early October.
The Dow Jones Industrial Average rose 222.93 points, or 0.8%, to 28,004.89, the S&P 500 gained 23.83 points, or 0.77%, to 3,120.46 and the Nasdaq Composite added 61.81 points, or 0.73%, to 8,540.83.
"The market rally has largely been driven by the positive sentiment around the trade talks, obviously," said Rahul Shah, chief executive of Ideal Asset Management in New York.
The fourth quarter, which tends to be the best period for corporate earnings, will likely be supportive of stocks, but poor macroeconomic data or a political event could trigger a downturn, Shah said.
"Since the market is hitting all-time highs and everybody's comfortable, the risk of an event affecting the market negatively is higher now because the market is an elevated level," he said.
The S&P 500 has gained more than 24% year to date, and the benchmark index is trading at 18 times forward earnings, or higher than a historical norm of about 15.
All but one of the 11 major S&P 500 sectors were higher, with healthcare leading the way, gaining 2.21% as Johnson & Johnson and Pfizer lifted the sector.
Gold prices and government debt prices fell as investors leaned away from safe-haven assets.
U.S. gold futures settled down 0.3% at $1,468.50 per ounce.
Benchmark 10-year U.S. Treasury notes fell 5/32 in price to push yields up to 1.8342%. Germany's 10-year Bund yield traded at -0.332%.
The dollar index fell 0.17%, with the euro up 0.28% to $1.1052. The yen weakened 0.36% versus the greenback at 108.82 per dollar.
Oil futures, meanwhile, gained nearly 2%.
Brent crude gained $1.02 to settle at $63.30 a barrel, while West Texas Intermediate crude rose 95 cents to settle at $57.72 a barrel.
(Reporting by Herbert Lash Editing by Nick Zieminski and Rosalba O'Brien) ((firstname.lastname@example.org; 1-646-223-6019; Reuters Messaging: email@example.com))