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Stocks rose on Wednesday as tech shares out performed and Boeing regained some of the sharp losses from this week. Investors also digested the release of solid economic data.
The Dow Jones Industrial Average traded 200 points higher, while the S&P 500 gained 0.87 percent to trade back above 2,800, a key level watched by investors. The Nasdaq Composite advanced 0.93 percent.
The S&P 500 tech sector rose 1.1 percent, led by a 4.1 percent gain in Nvidia. Chipmakers rose broadly, with the VanEck Vectors Semiconductor ETF (SMH) advancing 1 percent. Tech shares have been on fire this week, with the sector rising more than 3.5 percent.
Facebook, Amazon, Netflix, Alphabet and Apple all traded higher on Wednesday.
“The move in tech, it almost feels like they’re sniffing out something is coming” on the U.S.-China trade front, said Quincy Krosby, chief market strategist at Prudential Financial. “The moves in the semis and Apple are suggesting a deal may be in the coming weeks; perhaps not at the end of March, but sometime in the near future.”
Boeing shares rose 0.8 percent, following an 11.15 percent drop in the previous two sessions. The aerospace giant’s stock has been under pressure this week since amid worries over the safety of the 737 MAX airplane, one of its most popular models.
Several countries, including China, the European Union and Indonesia, grounded all flights involving the 737 Max model after two deadly crashes in less than six months, including one on Sunday.
“We believe investors were pricing in very limited risk to the 737 ramp-up profile, which now has greater risk within the wide range of possible outcomes following these incidents,” Goldman Sachs analyst Noah Poponak said in a note.
Boeing’s struggles caused the Dow to struggle this week. The Dow is up only 0.4 percent through Tuesday’s close, while the S&P 500 and Nasdaq are both up more than 1.7 percent.
Equities got a boost Wednesday after the Commerce Department said nondefense durable goods orders posted their largest increase in six months in January, rising 0.8 percent. Overall durable goods orders also rose 0.4 percent while economists polled by Refinitiv expected a decline of 0.5 percent. The data overshadowed a weaker-than-expected print on the producer price index.
J.P. Morgan Chase traded 0.8 percent after CNBC learned the bank was expanding into several new markets, including some that are dominated by Bank of America. Other bank shares also rose, with Citigroup and Bank of America advancing more than 1 percent each.
—CNBC’s Spriha Srivastava contributed to this report.