U.S. stocks rose on Wednesday after comments from Treasury Secretary Steven Mnuchin's fueled optimism that the United States and China were close to striking a trade deal, while the tech sector was boosted by chipmaker Micron's upbeat results.
"We were about 90% of the way there (with a deal) and I think there's a path to complete this," Mnuchin said in an interview to CNBC.
Tech stocks were the biggest gainers among the 11 major S&P sectors, with a 1.53% jump, while the trade-sensitive industrial index rose 0.17%.
"Any good news on trade is good news for the equity markets. As long as the two countries are negotiating, it's a good thing and that's what is moving markets at this time," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.
However, investors were cautious after President Donald Trump told Fox Business Network that he would impose additional tariffs on China if he did not reach a trade deal with Chinese president Xi Jinping.
Trump and Xi are set to meet at the Group of 20 summit in Japan on Friday.
At 9:52 a.m. ET the Dow Jones Industrial Average was up 31.66 points, or 0.12%, at 26,579.88 and the S&P 500 was up 6.24 points, or 0.21%, at 2,923.62.
The Nasdaq Composite was up 65.55 points, or 0.83%, at 7,950.27.
Micron Technology Inc jumped 11.2%, lifting the Philadelphia Semiconductor index 3.09% higher.
The company said it had resumed some shipments to Chinese telecoms equipment maker Huawei Technologies Co Ltd and still expected demand for its chips to recover later this year.
Also boosting the tech-heavy Nasdaq were gains in shares of Apple Inc, Microsoft Corp and Amazon.com Inc .
The S&P 500 index has gained 6.4% so far in June, hitting a record high last week, largely on hopes that the Federal Reserve would cut interest rates to couRead More – Source