US stocks jumped about 1.6 percent on Wednesday, bolstered by the technology sector, as signs Beijing would ease its "Made in China 2025" industrial policy added to optimism fueled by President Donald Trump's upbeat comments on trade talks. Trump, in an interview with Reuters, said trade talks were already underway and that China was buying a "tremendous amount" of US soybeans.
China, the largest buyer of US soy, made the first major US soybeans purchase on Wednesday, since Washington and Beijing agreed to a temporary trade truce earlier this month, Reuters reported. Trump also said he would intervene in the case against a top executive at Huawei Technologies if it would help secure a trade deal.
"Sentiment is driven by positive news that there might be progress with US and China negotiations - which, I think, will be the number 1 headline for the next three months," said Tom Plumb, president of Plumb Funds in Madison, Wisconsin.
The S&P technology sector gained 2.21 percent, providing the biggest support to the market. The sector, which is heavily exposed to China, is among the most beaten-down this quarter.
Another trade-sensitive sector, industrials, rose 1.89 percent on strength in Caterpillar Inc and Boeing Co.
Trading has been especially choppy in the past two days amid a slew of headlines on topics ranging from trade to Britain's planned divorce from the European Union and a US government shutdown.
At 12:55 a.m. EDT the Dow Jones Industrial Average was up 410.12 points, or 1.68 percent, at 24,780.36, the S&P 500 was up 44.60 points, or 1.69 percent, at 2,681.38 and the Nasdaq Composite was up 154.87 points, or 2.20 percent, at 7,186.70.
The other big boost came from a more than 2-percent gains in health and consumer discretionary stocks.
China-based music streaming company Tencent Music Entertainment jumped 8.69 percent in its US debut.
Verizon Communications Inc shares fell 2.22 percent after Morgan Stanley downgraded the stock.