The market cheered a nearing trade deal between the U.S. and China and a soft measure on the service economy capped gains.
Trade optimism as American and Chinese officials are reportedly closing in on a trade deal, having resolved most of the outstanding issues in their protracted trade dispute. Both countries have levied tariffs on billions of dollars’ worth of each other’s goods since last year.
The Dow rose 50 points as Intel and Goldman Sachs outperformed. The S&P 500 gained 0.45 percent, led by the financials sector. The Nasdaq advanced 0.9 percent on trade optimism.
According to the Financial Times, Beijing wants Washington to remove existing U.S. duties on Chinese imports, while the Trump administration wants China to agree to enforcement measures that ensure the country sticks to the deal.
U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are scheduled to meet with Chinese Vice Premier Liu He later on Wednesday to resume talks.