Wednesday's early trade: S&P, Nasdaq hit new record highs; FedEx tumbles

The S&P 500 and Nasdaq inched to all-time highs on Wednesday, extending a record-setting run as investors' optimism about the global economy remained strong, while a steep drop in FedEx shares limited further gains.

All three major indexes were on pace for their sixth straight session of gains, building on a rally kicked off last week by expectations of an initial US-China trade deal.

Analysts said the trade agreement, announced on Friday, removed a major risk for global equity markets, leaving stocks with slightly more room to rise in what is left of 2019.

"The trade truce with China has really set the backdrop for a continued move higher to the end of the year," said Chris Zaccarelli, Chief Investment Officer, Independent Advisor Alliance, Charlotte, North Carolina.

"I don't see a huge rally, just a slow drip." The benchmark S&P 500 hit its fifth consecutive record high on Wednesday, its longest streak since January 2018.

However, holding back gains on the index was a near 10% drop in FedEx shares after the US parcel delivery company lowered its fiscal 2020 profit forecast on heavy expenses, slowing global trade and the fallout from its breakup with Amazon.com Inc.

The profit warning from FedEx pressured shares of rival United Parcel Service Inc, with the Dow Jones Transport Average down 1.1%.

At 11:57 a.m. ET the Dow Jones Industrial Average was up 1.44 points, or 0.01%, at 28,268.60, the S&P 500 was up 2.41 points, or 0.08%, at 3,194.93 and the Nasdaq Composite was up 19.75 points, or 0.22%, at 8,843.11. The S&P index recorded 32 new 52-week highs and no new low, while the Nasdaq recorded 113 new highs and 40 new lows.