Wall Street Closes Higher On Trump's ZTE Offer

US markets have has closed higher, with traders buoyed by hopeful signs in the US-China trade dispute.

The Dow Jones added 0.3 percent to 24,899, while the S&P 500 and Nasdaq both gained about 0.1 percent to finish at 2,730 and 7,411.

Investors were cheered by news President Donald Trump had offered China an olive branch in its trade dispute, vowing to ease the pain from sanctions on Chinese telecoms equipment maker ZTE. But the trading session saw stocks sag as early gains eroded.

The signs of detente between Washington and Beijing on ZTE, however, come as other trade hazards loom. China and the United States have threatened to put tariffs on hundreds of billions of dollars in exported goods and officials from both nations are due to continue talks in Washington this week.

Art Hogan of Wunderlich Securities said Wall Street always welcomes signs of easing trade tensions. "Anytime you get a dent on that concern, the market seems to rally and that is helping today. Nothing concrete necessarily, but a glimmer of hope."

United Health and Walmart were the Dow's biggest gainers, adding 1.9 percent and 1.2 percent respectively.

But optical component makers that supply ZTE saw their stocks rise even higher. Oclaro gained 2.9 percent and Lumentum added 2.2 percent. Aircraft giant Boeing, highly exposed to the Chinese market, added 0.6 percent. (AFP)