Stocks headed higher at the start of trade Wednesday morning, as investors grow more optimistic that a U.S.-China trade deal will be reached in the coming weeks or months.
What are major indexes doing?
The Dow Jones Industrial Average DJIA, +0.08% rose 54 points, or 0.5%, to 26,224, while the S&P 500 index SPX, +0.31% gained 10 points, or 0.4%, to 2,877. The Nasdaq Composite Index COMP, +0.63% added 10 points, or 0.5%, to 7,888. DJIA, +0.08%
On Tuesday, the Dow fell 79.29 points, or 0.3%, to 26,179.13. The S&P 500 index rose 0.05 point to 2,867.24, while the Nasdaq Composite Index rose 19.78 points, roughly 0.3%, to 7,832.
Tuesday’s session left the S&P 500 just 2.2% below its all-time close of 2,930.75 hit on Sept. 20.
What’s driving the market?
U.S. stocks followed the lead of global equities, which rallied on a report over progress with trade talks between the U.S. and China. “Ninety percent of the deal is done, but the last 10% is the hardest part, it’s the trickiest part and it will require trade-offs on both sides,” said Myron Brilliant, executive vice president for international affairs at the U.S. Chamber of Commerce, adding that talks are in the “endgame stage,” according to the Financial Times.
High-level discussions that began in Beijing last week are set to resume Wednesday in Washington, as China’s Vice Premier Liu He prepares to meet with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. The parties hope to set the stage for a summit between President Donald Trump and Chinese President Xi Jinping, where a final trade agreement could be signed as early as this month, though the timing of deal remains uncertain.
Meanwhile, the Caixin China services purchasing managers index, which gauges the country’s private sector, rose to a