Wall Street stocks jumped early Wednesday October 9th following reports highlighting a possible US-China trade deal ahead of this week's negotiations, AFP reported.
Prominent indicators had fallen 1% on Tuesday following new US sanctions on Chinese corporations that prompted a sharp response from Beijing ahead of the Thursday negotiations. A breakthrough in talks would be a major boost for equity markets, currently struggling to recover, according to Bloomberg.
Possible talks of relieving the tension between the two countries put the stocks in positive territory throughout Wednesday. However, the rally started to diminish slightly towards the end of the day.
The Dow Jones was raised by 0.7% to close at 26,346.14.
The broad-based S&P 500 gained 0.6% to 2,911.11, while the tech-rich Nasdaq Composite Index advanced 0.8% to 7,882.64.
Investors are keenly looking for the release of Federal Reserve meeting minutes about the Fed's most recent interest rate cut, which could suggest the likelihood of additional rate cuts this month.
Johnson & Johnson faced a 2% fall following a court ruling that would require it to pay a total sum of $8 billion in punitive damages over the psychiatric drug Risperdal. However, the company said they would appeal the verdict.
American Airlines jumped 3.1% as it said a key benchmark on revenue rose to 2.5% from 1.5% in the third quarter, indicating strong demand despite a hit from Hurricane Dorian and the continued effect of the grounding of Boeing's 737 MAX planes.
The fleet of Boeing's 737 MAX is set to take the skies on January 15th next year according to American Airlines.