Investing.com – U.S. stocks surged Wednesday as investors hoped for good news ahead of a resumption of U.S.-China trade talks.
There was a little good news as Bloomberg reported China was open to a partial deal.
The S&P 500 was up 0.91%, thanks in part to gains for its two biggest components, Microsoft (NASDAQ:MSFT) and Apple NASDAQ:AAPL), and strength in tech and energy stocks overall.
The Nasdaq Composite gained 1.02%, and the Dow Jones industrials rose 0.69%, or 182 points. At one point, the blue chips were up more than 250 points before profit-taking set in.
The rally was set off by a report China was open to a number of trade measures, including boosting purchases of U.S. farm products. But the report suggested a resolution to disputes over intellectual property and market access for industrial products could come later.
Like the S&P 500, the Dow was pushed higher by Microsoft) and Apple. The duo plus Visa (NYSE:V) contributed more than 60 points to the Dow's gain. The one loser among the Dow stocks was Johnson & Johnson (NYSE:JNJ), which fell after a Philadelphia jury awarded $8 billion in damages over problems with the anti-psychotic drug Risperdal.
The market anticipated minutes from the last Federal Reserve meeting that officials are increasingly worried about the trade fight's impact on business spending and expansion. Fed Chairman Jerome Powell repeated the concern in speeches this week.
Oil prices were little change. Metal prices moved higher. So did interest rates, thanks to the stock rally.