US stocks up on hopes Powell will signal rate hike relief

U.S. stocks opened higher Wednesday on hopes that a meeting during the G20 gathering between President Trump and Chinese President Xi Jinping could thaw trade tensions between the two countries.

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Investors were also hoping that Federal Reserve Chairman Jerome Powell would signal a more dovish stance on interest rates by the central bank during a speech Wednesday.

Meanwhile, the second revision to 3Q GDP came in as expected, unchanged at 3.5 percent. October new homes sales data will also be released.

On Tuesday, U.S. stocks trimmed early session losses and posted modest gains as shares of several tech companies and retailers paced the broader market.

Investors assessed a downbeat report from the S&P CoreLogic Case-Shiller National Home Price Index, which indicated that the pace of U.S. home price hikes declined in September.

Ticker Security Last Change %Chg I:DJI DOW JONES AVERAGES 24911.66 +162.93 +0.66% SP500 S&P 500 2686.1 +3.93 +0.15% I:COMP NASDAQ COMPOSITE INDEX 7096.2659 +13.57 +0.19%

In afternoon trading, several big tech companies, including Microsoft, Amazon and Netflix, began rising, and retailers like Macy’s and J.C. Penney Co. also posted gains, pushing the Dow Jones Industrial Average and S&P 500 into positive territory.

Sentiment was also boosted Tuesday afternoon when Larry Kudlow, Trump’s top economic advisor, told reporters that prospects for a U.S.-China trade were encouraging as reported by FOX Business.

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In Asian markets, China’s Shanghai Composite finished the day up 1.1 percent.

Hong Kong’s Hang Seng Index ended the session up 1.3 percent.

Japan’s Nikkei average rose for a fourth day gaining 1 percent.

In Europe, London’s FTSE was lower by 0.1 percent, Germany’s DAX was gaining 0.1 percent and France’s CAC added 0.2 percent.

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