US close: Markets rise on renewed China trade hope

US stocks closed higher on Wednesday after reports circulated that Beijing was open to a partial trade deal with Washington.

The Dow Jones Industrial Average was up 0.7% at 26,346.01, the S&P 500 added 0.91% to 2,919.40, and the Nasdaq 100 was ahead 1.13% at 7,690.53.

At the open, the Dow was 163.96 points higher after stocks on Wall Street closed firmly lower in the previous session on the back of news that the US had expanded its trade blacklist to include China's top artificial intelligence firms.

Sentiment was lifted slightly on Wednesday by a Bloomberg report indicating that China was open to a limited tariff resolution with the US, although Beijing would not move on certain major sticking points.

A separate report from the Financial Times said that China had already offered to increase its purchases of US agriculture products by 50% to $50bn.

High-level trade negotiations between both nations were set to begin in Washington on Thursday but the day before an unnamed Chinese official told Bloomberg that negotiators were not optimistic about securing a broad agreement to fully end the trade conflict.

"It has been a modestly positive morning for European equities, but overall stock markets are still stuck in a violent see-saw between buyers and sellers as investors try to position themselves ahead of the US-China trade talks,” said IG's Chris Beauchamp.

“These discussions are being invested with so much importance that it feels as if the very future of the bull market is probably at stake.

"In reality, this is probably overstating the case, but it is unlikely that sentiment will improve much if the talks break down in acrimonious recriminations."

Minutes from the Federal Open Market Committee’s September meeting were released late in the session, and suggested the central bank’s officials began the debate over how far they should take their current interest rate cutting plan.

A number of members pushed for the statement to at least signal where the limits to its policy easing lay, after chair Jerome Powell described it as a “mid-cycle adjustment” in July.

“Participants generally judged that downside risks to the outlook for economic activity had increased somewhat since their July meeting, particularly those stemming from trade policy uncertainty and conditions abroad,” the minutes read.

On the data front, an unexpected drop in mortgage interest rates saw refinancing demand surge over the week ending on 4 October, pushing total mortgage application volumes up 5.2%, according to the Mortgage Bankers Association.

Volumes were 69% higher year-on-year, while average contract interest rates for 30-year fixed-rate mortgages decreased to 3.90% from 3.99%.

Elsewhere, the number of job openings across the US was little changed at 7.1m on the last business day of August, according to the Bureau of Labor Statistics.

Over the month, hires edged down to 5.8m and separations were broadly flat at 5.6m.

Within separations, the quits rate was also little changed at 2.3%, while the layoffs and discharges rate was unchanged at 1.2%.

In corporate movements, consumer technology giant Apple was up 1.17%, after China accused it of aiding Hong Kong protestors by allowing an app that helps people track police in the special administrative region to exist on the App Store.

American Airlines was ahead 3.07%, after telling the market that it was expecting the fatally flawed Boeing 737 MAX aircraft to remain grounded awaiting vital fixed until at least January.

Shares in Boeing were up 0.23%.

Dow Jones - Risers

Microsoft Corp. (MSFT) $138.24 1.89%
Intel Corp. (INTC) $50.48 1.52%
Visa Inc. (V) $174.88 1.43%
Chevron Corp. (CVX) $113.14 1.28%
Caterpillar Inc. (CAT) $119.44 1.25%
American Express Co. (AXP) $113.92 1.23%
Apple Inc. (AAPL) $227.03 1.17%
Walmart Inc. (WMT) $118.93 1.15%
Exxon Mobil Corp. (XOM) $67.44 1.11%
Merck & Co. Inc. (MRK) $84.18 1.07%

Dow Jones - Fallers

Johnson & Johnson (JNJ) $129.23 -1.99%
Verizon Communications Inc. (VZ) $59.22 -0.84%
Goldman Sachs Group Inc. (GS) $196.70 -0.26%
Walgreens Boots Alliance, Inc. (WBA) $52.08 -0.03%
Dowdupont Inc. (DWDP) $30.52 0.00%
International Business Machines Corporation (CDI) (IBM*) $143.66 0.00%
3M Co. (MMM) $150.99 0.17%
Boeing Co. (BA) $374.96 0.23%
Coca-Cola Co. (KO) $53.83 0.47%
Travelers Company Inc. (TRV) $141.30 0.48%

S&P 500 - Risers

Hess Corp. (HES) $64.36 3.59%
Keysight Technologies Inc. (KEYS) $94.62 3.49%
Nektar Therapeutics (NKTR) $16.71 3.28%
Edwards Lifesciences Corp. (EW) $224.81 3.11%
Applied Materials Inc. (AMAT) $50.84 3.10%
American Airlines Group (AAL) $27.07 3.07%
Illumina Inc. (ILMN) $297.01 2.98%
Arconic Inc. (ARNC) $25.60 2.90%
S&P Global Inc Com (SPGI) $248.79 2.87%
Jefferies Financial Group Inc. (JEF) $17.46 2.77%

S&P 500 - Fallers

L Brands Inc (LB) $17.18 -2.94%
Mattel Inc. (MAT) $10.65 -2.78%
Johnson & Johnson (JNJ) $129.23 -1.99%
Cabot Oil & Gas Corp. (COG) $17.34 -1.98%
Evergy, Inc. (EVRG) $63.80 -1.86%
Cimarex Energy Co (XEC) $43.31 -1.41%
Activision Blizzard Inc. (ATVI) $53.43 -1.29%
Darden Restaurants Inc. (DRI) $112.47 -1.29%
Allegion (ALLE) $101.04 -1.26%
Netflix Inc. (NFLX) $267.53 -1.18%

Nasdaq 100 - Risers

Applied Materials Inc. (AMAT) $50.84 3.10%
American Airlines Group (AAL) $27.07 3.07%
Illumina Inc. (ILMN) $297.01 2.98%
Align Technology Inc. (ALGN) $189.21 2.66%
Lam Research Corp. (LRCX) $233.13 2.38%
JD.com, Inc. (JD) $28.38 2.34%
Workday, Inc. (WDAY) $173.29 2.24%
Hologic Inc. (HOLX) $49.44 2.17%
Skyworks Solutions Inc. (SWKS) $80.71 2.16%
Microchip Technology Inc. (MCHP) $91.19 2.13%

Nasdaq 100 - Fallers

Activision Blizzard Inc. (ATVI) $53.43 -1.29%
Netflix Inc. (NFLX) $267.53 -1.18%
Alexion Pharmaceuticals Inc. (ALXN) $94.84 -1.00%
Vertex Pharmaceuticals Inc. (VRTX) $168.73 -0.48%
Vodafone Group Plc ADS (VOD) $19.61 -0.05%
Henry Schein Inc. (HSIC) $62.11 -0.03%
Walgreens Boots Alliance, Inc. (WBA) $52.08 -0.03%
Shire Plc Ads (SHPG) $179.20 0.00%
J.B. Hunt Transport Services Inc. (JBHT) $106.03 0.04%
Kraft Heinz Co. (KHC) $26.73 0.07%