US open: Dow surges 324 points at the bell amid signs of improving US-Sino relations

The Dow surged more than 320 points at the open on Wednesday amid signs of improving trade relations between the US and China.

At 1435 GMT, the Dow Jones was 1.31% higher 24,689.64, while the S&P 500 had picked up 1.27% to 2,670.88 and the Nasdaq was 1.38% firmer at 7,128.78.

Sentiment was underpinned by reports that China has agreed to cut tariffs on US cars from 40% to 15% in a move aimed at de-escalating the trade war with the US.

The mood was also lifted by news that Huawei's chief financial officer, Meng Wanzhou, had been released on bail and comments by Donald Trump, who said in an interview with Reuters on Tuesday that he would intervene in the Justice Department's case against Wanzhou if needed.

James Hughes, chief market analyst at AxiTrader, said: "Optimism is coming from two directions, with hopes that a trade deal can be struck between the US and China driving sentiment, whilst anticipation that the Federal Reserve may elect not to hike interest rates next week is also lending support."

On the macro front, falling gas prices helped offset increases in rent and prescription drug prices during November and kept inflation in the US at an arm's length.

The consumer price index, or cost of living, was stable last month, according to the Bureau of Labor Statistics, as expected by economists.

The increase in the cost of living over the past 12 months slowed to 2.2% from 2.5%, just shy of its lowest level this year.

In corporate news, Mallinckrodt shares opened 2.77% lower after the pharmaceuticals company's subsidiary, SpecGx, received a complete letter response from the FDA for its new drug application for Roxicodone, which is a treatment for pain requiring an opioid.

Synergy Pharmaceuticals slid 54.6% in early trade as it filed for Chapter 11 bankruptcy and announced an agreement to sell most of its assets to Bausch Health for $200m.

Elsewhere, Neurocrine Biosciences tumbled 23.04% after its trial of a Tourette's syndrome treatment missed its primary goal.