Another set of data showed the USA trade deficit jumped to a five-month high in May as imports of goods increased and new orders for US -made goods fell for a second straight month May while shipments barely rose.
About 15 minutes into trading, the Dow Jones Industrial Average had gained 1.0 percent to 26,861.73, and the broad-based S&P 500 rose 1.1 percent to 2,975.09, as it reached a new intraday record. But Australia's S&P ASX 200 advanced 0.5% to 6,689.10 and the Sensex in India edged 0.1% higher to 39,837.36. The Nasdaq also closed at a record, finishing at 8,170, a gain of 0.8%. The Nasdaq rose 0.8 percent to close at 8,170 and the S&P 500 at 2,996 points, an 0.8 percent gain.
"With the modestly positive agreement to restart trade negotiations between the USA and China, the bullish narrative now pivots to the Fed meeting at the end of July, when it is overwhelmingly expected to lower the overnight rate by a quarter point", Ameriprise Chief Market Strategist David Joy told the WSJ.
The financial sector.SPSY was flat, while bank stocks.SPXBK, which tend to benefit from a higher interest rate environment, fell 0.37%. Most Asian stock markets have risen after Wall Street's benchmark hit a new high following the latest U.S.
Tokyo's Nikkei 225 rose 0.1 percent to 21,754.38 and Hong Kong's Hang Seng gained 1.2 percent to 28,899.10.
Still, stocks have rallied to push the S&P 500 to a record for a second straight session in the wake of the USA trade truce with China.
Wimbledon 2019: Defending champion Novak Djokovic off to winning start
But Federer is quick to praise the influence of Djokovic and Nadal - between them, the trio have won 53 of the last 64 Slams. First opening rounds are obviously tricky if you get a quality opponent like Kohlschreiber, who has got a lot of experience.
Market participants still expect the Fed to cut interest rates at its July 30-31 policy meeting, despite the latest developments in trade talks.
The slide in energy companies and losses in banks and other sectors outweighed gains in communications services, real estate and utilities stocks.
Tesla rose 4.6% after telling investors that it delivered more electric cars in the second quarter than any three-month period in its history. Small-company stocks fell, sending the Russell 2000 index down 0.6% to 1,560.54.
The yield on the 10-year Treasury note fell to 1.95% from 1.97% Tuesday. 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 market will close early Wednesday and remain closed Thursday, making for a short week.
Investors are now shifting their focus back on the Federal Reserve and its interest rate policy outlook for the year. Natural gas added 5 cents to $2.29 per 1,000 cubic feet.
The dollar fell to 107.62 Japanese yen from 108.90 yen on Tuesday.