Investing.com -- The S&P 500 eked out a gain Wednesday, led by tech, a day after turning positive for the year amid ongoing optimism surrounding the U.S.-China trade deal.
At 4:00 p.m. EDT (20:00 GMT), the Dow Jones Industrial Average fell 89 points, or 0.1%, the S&P 500 index rose 0.2%, and the NASDAQ Composite added 0.7%.
Markets await updates on trade deals, but tech continues shine
The breather in the recent rally comes as investors continue to pour over any further details on the trade policy front. National Economic Council Director Kevin Hassett said President Trump could announced a major trade deal when he returns from his Middle East tour. Trump has already secured a $600 billion commitment from Saudi Arabia to invest in the U.S.
Additionally, Reuters reported that the Trump administration will slash the so-called "de minimis" tariff on low-value imported packages from China to as low as 30%.
On Monday, the White House unveiled an executive order bringing down the duty on these direct-to-consumer packaged items valued at $800 or less to 54% from 120%, adding to optimism spurred on by an earlier trade truce between Washington and Beijing. A flat fee of $100 remained in effect, although a planned increase to $200 in June was scrapped.
Tech stocks, however, remained in ascendency, led by Alphabet Inc Class A (NASDAQ:GOOGL), Advanced Micro Devices Inc (NASDAQ:AMD), and NVIDIA Corporation (NASDAQ:NVDA), with the latter two supported by ongoing signs of chip demand after notching chip deals with Saudi-based Humain,
Elsewhere in chips, Super Micro Computer Inc (NASDAQ:SMCI) extended its rallied just days after Raymond James initiated coverage on the stock with an outperform rating, citing long-term AI-led server demand. The company also announced a multi-year, $20 billion partnership with Saudi data center firm DataVolt.
Fed speak continues
The U.S. economic data slate is largely empty Wednesday, but a number of Fed officials delivered remarks touting concerns about a tariff-related drag on the economy.
Remarks from Fed officials will be closely watched at a time when bets on the Fed cutting rates three to four times this year remain intact.
“So while the de-escalation of trade tensions is helpful for growth, it also makes it more likely that inflation will be less of an issue for the Federal Reserve and the scope for Fed rate cuts remains,” ING analysts said in a note.
ING still expects the Fed to wait until September to cut rates, but said a cut of 25 basis points seems more likely now than the previously anticipated 50 bps.
Cisco earnings in spotlight
Highlighting the earnings calendar on Wednesday will be quarterly results from Cisco Systems (NASDAQ:CSCO), with analysts curious to see how the technology equipment firm views the impact from U.S. duties on its finances.
Elsewhere, American Eagle Outfitters (NYSE:AEO) stock slumped after the clothing retailer withdrew its outlook for the year after posting disappointing preliminary first-quarter results.
Ford (NYSE:F) stock fell with the auto giant having to recall over 273,000 vehicles in the United States as a loss of brake function may increase the risk of a crash.
Peter Nurse, Ayushman Ojha contributed to this article.