US stocks opened higher for a fourth straight day on Wednesday, boosted by energy and technology sectors, as well as hopes of a trade deal between the United States and China, reports Reuters.
The Dow Jones Industrial Average .DJI rose 56.82 points, or 0.24 per cent, at the open to 23,844.27. The S&P 500 .SPX opened higher by 5.59 points, or 0.22 per cent, at 2,580.00. The Nasdaq Composite .IXIC gained 26.06 points, or 0.38 per cent, to 6,923.06 at the opening bell.
An earlier report adds: US stock index futures rose on Wednesday, setting up Wall Street for a fourth straight day of gains, as rising expectations of a trade deal between the United States and China boosted demand for risk assets across the world.
Both countries ended their talks in Beijing that lasted longer than expected and officials said details will be released soon, raising hopes that an all-out trade war that could badly disrupt the global economy can be averted.
Optimism over the trade negotiations, health of the US economy and Federal Reserve chair Jerome Powell's dovish remarks on interest rates have sparked a rally that has lifted the S&P 500 9.5 per cent from the 20-month low it hit around Christmas.
Shares of Boeing Co, which is sensitive to trade-related news, were up 0.9 per cent in premarket trading. Shares of energy companies such as Exxon Mobil Corp and Schlumberger NV rose about 1 per cent, as a rally in oil prices extended for the eighth straight day.
Amazon.com Inc, now the most valuable US company, gained 0.7 per cent. The online retailer's three-day surge has fueled the market's recent rally.
"There's a solid uptrend that's come off the Christmas Eve downturn. So any development that looks like it might be leading to an eventual resolution will be helpful to the markets," said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.
"It's likely that we'll see a similar leadership (from the past three days). The high-profile names that tend to move the most, do in both direction."
But threatening to weigh on sentiment was the partial US government shutdown that entered its 19th day as Democratic lawmakers and the White House remain divided over President Donald Trump's demand for money for a border wall.
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