Stocks closed sharply higher on Wednesday after President Donald Trump reportedly obtained concessions from the European Union to avoid a trade war.
The Dow Jones Industrial Average rose 172.16 points to close at 25,414.10 after falling more than 100 points earlier in the session. The Nasdaq Composite jumped 1.2 percent to an all-time high of 7,932.24 as Google-parent Alphabet, Facebook and Amazon all jumped. The S&P 500 gained 0.9 percent to 2,846.07, closing less than 1 percent from its record high, as tech rose 1.5 percent.
Dow Jones reported, citing an EU official, that the EU has agreed to import more U.S. soybeans. Dow Jones also said the EU agreed to lowering tariffs on industrial goods.
Caterpillar jumped to close 1.8 percent higher on heavy volume following the report. Ford shares nearly went positive after falling as much as 4 percent earlier in the day.
The report comes as Trump met with European Commission President Jean-Claude Juncker to discuss trade issues.Trade relations between the U.S. and EU had been strained in recent months. In June, the U.S. president threatened tariffs on imported cars from the European Union. Last week, the EU’s Trade Commissioner Cecilia Malmstrom said that if the U.S. imposed these levies, it would be “very unfortunate,” and added that the bloc had prepared its own list of countermeasures.
Stocks also rose off their lows after a bipartisan group of Senators announced a bill that could potentially delay any auto tariffs implemented by the Trump administration. The bill would require "the International Trade Commission (ITC) to conduct a comprehensive study of the well-being, health, and vitality of the United States automotive industry before tariffs could be applied."
Both Boeing and General Motors reported better-than-expected quarterly earnings, but their full-year forecasts disappointed Wall Street. Boeing dropped 0.7 percent while General Motors fell 4.5 percent.
Boeing reaffirmed its 2018 earnings forecast while General Motors slashed its own estimates, citing "recent and significant increases in commodity costs" as well as currency headwinds for the cut.