Markets Right Now: US stock indexes rise in early trading

A man walks past an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo Wednesday

Markets Right Now: US stock indexes rise in early trading

"The post-G20 optimism remained short-lived", Ipek Ozkardeskaya of London Capital Group said in a commentary, "as White House trade adviser Navarro reminded investors that agreeing on a trade deal between the USA and China will certainly take time, although the countries moved in the right direction at the latest G-20 summit".

Traders now see a 29.7% chance the Federal Reserve would cut borrowing costs by half a percentage point at its July 30-31 policy meeting, up from the 25% perceived chance on Tuesday and 24% a week ago.

The upbeat resolution to the long-anticipated meeting between US President Donald Trump and Chinese President Xi Jinping, who agreed they would not impose new tariffs, left investors bullish on the very near-term outlook for equities.

The Shanghai Composite Index was off 2 points at 3,043.11 and Seoul's Kospi shed 0.2 per cent to 2,124.32.

Bets that the central bank would cut rates to preserve a decade-long US expansion helped the S&P 500 and the Dow Jones indexes post their best June performance in decades.

The Dow Jones Industrial Average also reached a record, gaining 179.32 points, or 0.7%, to close at 26,966.

At 8:49 a.m. ET, Dow e-minis 1YMcv1 were up 57 points, or 0.21%.

Investors worry the fight over Beijing's technology ambitions will drag on global economic growth.

Technology stocks and banks accounted for much of Monday's gains Monday as traders turned their backs on more defensive holdings. The sector has been broadly higher this week. In corporate news, shares of Symantec Corp. jumped at the open after reports that chip maker Broadcom Inc. was in talks to buy the antivirus software company. Johnson & Johnson rose 1.5% and Merck rose 1.6%.

Technology and health care were the key sectors pushing the market higher Wednesday.

Communications and internet companies were also among the biggest gainers, with strong pushes from Facebook and Netflix.

Tesla Inc rose 6.4% after the electric carmaker set a record for quarterly vehicle deliveries in a triumphant response to months of questions about demand for its luxury electric cars.

The upbeat trading comes as the electric vehicle maker struggles to meet production promises and to consistently make money. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. The S&P 500 is up more than 19% so far, while the Dow is up more than 15%.

The CBOE Volatility Index, commonly known as the VIX, edged slightly lower on Wednesday, underscoring calm trading conditions in US markets.

US stocks have been on a tear since early June after Federal Reserve Chairman Jerome Powell put interest-rate cuts back on the table.

Bond prices rose. The yield on the 10-year Treasury fell to 1.95%.

Cleveland Fed President Loretta Mester, a Federal Reserve policymaker, yesterday expressed skepticism that a USA interest rate cut is the right move until there are more signs the economy is moving to a truly weaker path.

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