* White House sees ‘headway’ in U.S.-China trade talks
* Chipmakers rally; Nomura starts Intel, AMD with “buy”
* Boeing drops as Baird sees Wall St cutting earnings est
* U.S. private sector adds 129,000 jobs in March – ADP
* Indexes up: Dow 0.30%, S&P 0.56%, Nasdaq 1.01% (Changes comment, adds details, updates prices)
By Sruthi Shankar
April 3 (Reuters) – U.S. stocks rose on Wednesday, extending a strong start to the quarter as rising hopes of a trade deal with Beijing and bullish reports lifted the semiconductor index to a record high.
Advanced Micro Devices Inc jumped 10.9%, the biggest gainer on the S&P 500, and Intel Corp rose 2.6% after Nomura Instinet started coverage of both the stocks with “buy” ratings.
Semiconductor stocks, which are heavily reliant on China for their revenue, have surged more than 25% this year on optimism about trade and recovering demand for chips.
The Philadelphia Semiconductor index jumped 2.9% to a record high.
The rally came as White House economic adviser Larry Kudlow sounded upbeat about the trade talks, adding that Beijing and Washington hope to get closer to a deal this week.
“The fact that a trade deal is probably at hand is helping lift markets,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
“Hopes that a trade deal is imminent will alleviate some of the concerns about global economy as well as the U.S. economy.”
The Institute for Supply Management came out with its U.S. services sector PMI for March, which was below estimates and at its lowest since August 2017.
Earlier, the ADP National Employment Report showed U.S. private employers added 129,000 jobs in March, below economists’ estimates.
However, growth concerns have taken a back seat this week after upbeat manufacturing data from China