Stocks closed higher on Wednesday as investors digested news related to the ongoing trade war between the United States and China.
The Dow Jones Industrial Average rose 157.03 points to 24,527.27, led by gains in Caterpillar. The S&P 500 climbed 0.6 percent to close at 2,651.07 as the consumer discretionary sector outperformed. The Nasdaq Composite jumped 1 percent to 7,098.31 as Facebook, Amazon, Netflix and Google-parent Alphabet rose.
The major averages came off their highs in afternoon trading. The Dow had risen as much as 458.05 points, while the S&P 500 gained 1.85 percent at its session high. The Nasdaq rose as much as 2.35 percent.
"There's a lot of anxiety around there," said Dan Deming, managing director at KKM Financial. "The market is just dealing with some headline issues it just can't seem to shake off."
"Until we get some resolution to some of those issues, I think this will continue," Deming said.
Shares of Caterpillar and Boeing both rose more than 1 percent. These stocks are considered global trade bellwethers because of their exposure to markets abroad.
The Wall Street Journal reported China is working to increase access to foreign companies, a move aimed at smoothing U.S.-China trade relations. This plan, the report says, would replace the country's Made in China 2025 plan, a framework aimed at making China a leader in industries like clean-energy cars and robotics.
President Donald Trump told Reuters on Tuesday he would intervene in the Justice Department's case against a top executive at Chinese telecoms giant Huawei if it would help serve national security interests or help U.S.-Sino trade talks. Huawei is the one of the largest tech companies in China. It is also seen as a symbol of pride by the Chinese government.
Trump also said Tuesday talks between Washington and Beijing were ongoing and confirmed he would not raise tariffs on Chinese imports until he was sure about a comprehensive trade agreement.
Meanwhile, a Reuters report said Chinese state-owned companies bought at least 500,000 tons of U.S. soybeans on Wednesday.