US close: Major indices end session higher following rally in tech stocks

Wall Street stocks closed higher on Wednesday as investors looked ahead to this week's Federal Reserve symposium in Jackson Hole.

At the close, the Dow Jones Industrial Average was up 0.30% at 28,331.92, while the S&P 500 was 1.02% points higher at 3,478.73 and the Nasdaq Composite saw out the session 1.73% stronger at 11,665.06.

The Dow closed 84.48 points higher on Wednesday, reversing losses recorded in the previous session as signs of potential progress in trade talks between the US and China were offset by some weaker-than-expected consumer confidence data.

A rally in tech stocks late in the session helped major indices end the session in the green as market participants mostly looked ahead to a speech from Federal Reserve chairman Jerome Powell tomorrow at the central bank's annual meeting on monetary policy in Wyoming.

Investors will look out for hints on further stimulus programmes and the direction of the US economy, with a particular focus on hints on whether further monetary stimulus was on the horizon or if the Fed would soften its stance on inflation in favour of an approach that would look for an average 2% rate across the year.

Despite the slow start to trading, sentiment was given a slight boost by news that orders for goods made to last more than three years had smashed economists' forecasts last month, led by a sharp jump in those for motor vehicles and parts.

According to the Department of Commerce, in seasonally adjusted terms durable goods orders surged at a month-on-month pace of 11.2% to reach $230.7bn - well ahead of 4.8% increase expected by analysts.

In other macro news, mortgage applications slipped 6.5% in the week ended 21 August, the biggest decline recorded since mid-June, according to the Mortgage Bankers Association. Applications to refinance a home loan fell 10.2%, while homebuyer mortgage applications increased 0.4%.

In corporate news, software giant Salesforce smashed earnings expectations after the close on Tuesday and will now replace Exxon Mobil in the Dow Jones, while American Airlines said it would cut 19,000 jobs in October when a US government coronavirus wage support scheme extended to the industry ends.