The Dow and S&P 500 notched fresh records on Friday as year-end optimism continued to drive the rally. The Dow Jones Industrial Average rose 23 points to a record close of 28,645. The S&P 500 finished the day just 0.11 point higher at 3,240. The Nasdaq Composite slipped 0.1%, or 15 points, to 9,006, snapping a 11-day winning streak. Three major averages all hit new intraday highs earlier in the session. Trading volumes were light throughout the end of the holiday-shortened week.

A year-end rally in December has already ushered the U.S. equity indexes to historic levels and within reach of the market's best calendar year in more than two decades.

The S&P 500, up already more than 29% in 2019, is inches away from reaching historic proportions. The benchmark will post its best year since 1997 with an annual gain of more than 29.6%. The tech-heavy Nasdaq topped the 9,000 mark for the first time Thursday, lifted by a jump in Amazon shares on a record holiday shopping season.

Investors have been embracing riskier assets ever since the U.S. and China announced they have reached a phase one trade agreement earlier this month. The two sides are in the middle of translating and formalizing the deal. President Donald Trump said Tuesday there will ultimately be a signing ceremony with Chinese leader Xi Jinping, adding a quicker signing will happen soon.

U.S. Treasuries increased in a steady advance, leaving yields near their session lows. The 2-yr yield declined five basis points to 1.58%, and the 10-yr yield declined three basis points to 1.87%. The U.S. Dollar Index fell 0.5% to 97.03. WTI crude increased 0.1% to $61.74/bbl.