U.S. stock indexes closed higher on Wednesday following President Donald Trump's announcement of a new trade agreement with Japan, boosting investor optimism about additional trade deals.

At market close:

• The Dow Jones Industrial Average rose 507.85 points (1.14%)

• The S&P 500 gained 49.29 points (0.78%)

• The Nasdaq Composite added 127.33 points (0.61%)

The rally came after Trump posted on Truth Social on Tuesday, announcing the U.S. had secured a "big deal" with Japan that includes a 15% tariff on Tokyo's exports to the United States.

Separately, Trump revealed that U.S. officials will meet with European counterparts on Wednesday to negotiate a trade agreement with the European Union, according to CNBC.