Wall St flat as investors focus on trade developments
The S&P 500 is flat in choppy trading after the week's strong start on the back of encouraging inflation data and the US-China tariff truce, as investors turned their attention to global trade developments.
Eight of the 11 major S&P sectors were trading lower, although a 0.5 per cent advance in information technology helped stave off larger losses.
Most megacap and growth stocks ticked up, with Nvidia leading the charge with a 2.1 per cent jump. Advanced Micro Devices gained 5.4 per cent after the chip designer approved a new $US6 billion ($A9.3 billion) share buy-back program.
As President Donald Trump secured $US600 billion ($A929 billion) in commitments from Saudi Arabia during his tour of the Gulf states, a number of US technology firms announced artificial-intelligence-related deals in the Middle East on Tuesday.
In early trading on Wednesday, the Dow Jones Industrial Average rose 29.97 points, or 0.07 per cent, to 42,170.40, the S&P 500 gained 1.61 points, or 0.03 per cent, to 5,888.16, and the Nasdaq Composite gained 50.26 points, or 0.26 per cent, to 19,060.35.
US stocks have been buoyed since the weekend, when the United States and China hit pause on their fierce tariff dispute, signaling a joint effort to stave off a global economic downturn.
The US will temporarily lower the extra tariffs it imposed on Chinese imports to 30 per cent from 145 per cent for three months, while Chinese duties on US imports will fall to 10 per cent from 125 per cent in the same period.
"While there are undoubtedly still uncertainties and details to iron out with the trade negotiation with China, the easing of tensions is apparently enough for the markets," said Rick Gardner, chief investment officer at RGA Investments, in emailed comments.
"(Markets) are typically forward-looking and are pricing in an environment where the US and China are able to trade with each other," he said.
Including the day's gains so far, the S&P 500 has swung back into positive territory for the year, a milestone not seen since late February. However, the benchmark index is more than four per cent off the record peaks it hit earlier this year.
A 90-day tariff pause announced on April 9 for countries other than China, along with solid earnings reports and a limited US-UK trade agreement last week, helped the benchmark indexes claw back.
Tuesday's data showed US consumer prices rebounded moderately in April, with headline inflation rising 0.2 per cent, compared with economists' estimate of a 0.3 per cent increase and versus a 0.1 per cent drop in March.
US Federal Reserve Vice Chair Philip Jefferson said recent inflation data indicated progress toward the central bank's two per cent target, yet the outlook remained uncertain as potential new import taxes could elevate prices.
As earnings season draws to a close, results from retail giant Walmart will be on the radar later in the week.
American Eagle Outfitters dropped 5.9 per cent after the apparel company withdrew its annual forecasts, citing economic tariff-fueled uncertainty.
Declining issues outnumbered advancers by a 1.68-to-1 ratio on the NYSE, and by a 1.5-to-1 ratio on the Nasdaq.
The S&P 500 posted two new 52-week highs and six new lows, while the Nasdaq Composite recorded 40 new highs and 48 new lows.
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