Stocks closed solidly higher on Wednesday as investors welcomed news of a U.S.-Japan trade deal and prepared for the release of quarterly results from EV maker Tesla and Google parent Alphabet.

US stocks climbed on Wednesday after the US struck a trade deal with Japan, lifting hopes for further tariff pacts as Wall Street prepared for Tesla (TSLA) and Alphabet (GOOGL, GOOG) earnings after the bell.

The S&P 500 and Nasdaq notched record high closes on Wednesday, lifted by Nvidia and GE Vernova, as the European Union and the U.S. appeared headed toward a trade deal similar to an agreement President Donald Trump struck with Japan.