WASHINGTON (dpa-AFX) - After ending the previous session mostly higher, stocks have seen some further upside during trading on Wednesday. While buying interest is somewhat subdued, the major averages have all reached their best intraday levels in over three months.
Currently, the major averages are posting modest gains. The Dow is up 177.03 points or 0.4 percent at 43,043.90, the Nasdaq is up 63.45 points or 0.3 percent at 19,778.45 and the S&P 500 is up 16.48 points or 0.3 percent at 6,055.29.
The strength on Wall Street comes following the release of a closely watched Labor Department report showing U.S. consumer prices increased by slightly less than expected in the month of May.
The Labor Department said its consumer price index inched up by 0.1 percent in May after rising by 0.2 percent in April. Economists had expected another 0.2 percent increase.
Meanwhile, the report said the annual rate of consumer price growth accelerated to 2.4 percent in May from 2.3 percent in April. The annual rate of consumer price growth was expected to speed up to 2.5 percent.
Excluding food and energy prices, core consumer prices still crept up by 0.1 percent in May after edging up by 0.2 percent in April. Economists had expected core consumer prices to rise by another 0.2 percent.
The annual rate of core consumer price growth in May was unchanged from the previous month at 2.8 percent, while economists had expected the annual rate of core consumer price growth to accelerate to 2.9 percent.
Buying interest was also generated after U.S. and Chinese officials announced an agreement in principle on a framework to ease trade disputes between the two economic superpowers.
The plan is subject to approval by President Donald Trump and his Chinese counterpart Xi Jinping, Commerce Secretary Howard Lutnick told reporters.
Without specifying the terms of the framework, Lutnick indicated that both sides agreed to lift export controls on key goods and technologies.
In a subsequent post on Truth Social, Trump said the deal calls on China to supply full magnets and 'any necessary rare earths' up front.
'WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%,' Trump added. 'RELATIONSHIP IS EXCELLENT!'
Sector News
Despite the upward move by the broader markets, most of the major sectors are showing only modest moves on the day.
Semiconductor stocks are seeing notable strength, however, with the Philadelphia Semiconductor Index climbing by 1.0 percent.
Brokerage and software stocks are also seeing some strength on the day, while airline and steel stocks have moved to the downside.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan's Nikkei 225 Index climbed by 0.6 percent, while Hong Kong's Hang Seng Index advanced by 0.8 percent.
Meanwhile, the major European markets are turning in a mixed performance on the day. While the French CAC 40 Index is down by 0.3 percent, the German DAX Index is up by 0.1 percent and the U.K.'s FTSE 100 Index is up by 0.2 percent.
In the bond market, treasuries have moved to the upside following the inflation data. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.2 basis points at 4.442 percent.
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