Stock market buoyed by trade hopes, investors await Fed commentary

U.S. stocks rose in early trading on Thursday, buoyed by hopes the U.S. and its European counterparts could move to ease trade tensions.

Investors were also looking ahead to the latest commentary from the Federal Reserve, which could provide clarity into the U.S. central bank’s thoughts on trade policy, and whether the issue is influencing strategy.

What are markets doing?

The Dow Jones Industrial Average DJIA, +0.08% rose 140 points, or 0.6%, to 24,310. The S&P 500 SPX, +0.18% added 13 points to 2,726, a gain of 0.5%. The Nasdaq Composite Index COMP, +0.18% rose 43 points, or 0.6%, to 7,546.

The day’s gains were broad, with nine of the 11 primary S&P 500 sectors up on the day. Technology shares were among the biggest early gainers, with the industry up 0.9%, while material stocks rose 0.8%.

Trading was expected to be lighter than normal, with many market participants still out for the Fourth of July holiday, for which U.S. markets were closed on Wednesday.

What is driving the market?

Global trade tensions may have taken a positive turn on Thursday, with auto makers climbing after a U.S. official reportedly offered a “zero solution” to car tariffs. Such a deal would see the U.S. stop its threats to impose such duties in exchange for the European Union eliminating its levies.

Fiat Chrysler Automobiles NV FCAU, +5.45%  jumped 6.6%, Ford Motor Co. F, +0.41%  added 0.7% and General Motors Co. GM, +0.77%  rose 1.9%.

A day earlier, reports said the EU may try to broker talks between big auto producing countries to prevent tariffs from being hiked in an all-out trade war.

Read: How will investors know if there is a full-blown trade war? Here’s what Wall Street says

But if there was hope on the European front, trade tensions remained

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