Wall Street Up On Beijing's Tariff Reversal

Wall Street stocks broke out of a two-day slumber and won solid gains on Wednesday after Beijing reversed tariffs on some US goods which boosted hopes for a resolution to the trade war.

The conciliatory move, coupled with another rise in US Treasury bond yields, helped lift stocks after two lacklustre sessions.

"Equities have the best of both worlds," said Karl Haeling of LBBW, citing expectations of central bank easing even as the economy is "okayish."

The Dow Jones Industrial Average jumped 0.9 per cent to finish the day at 27,137.

The broad-based S&P 500 advanced 0.7 per cent to close at 3,001, while the tech-rich Nasdaq Composite Index surged 1.1 per cent to 8,170.

Beijing released two lists of exempted US goods, saving some seafood and anti-cancer drugs from the tariff hit. US President Donald Trump welcomed the development as a "big move".

However, Beijing did not spare high-profile US products like soybeans and pork.

Top negotiators expect to reconvene in Washington early next month after an acrimonious summer in which trade relations deteriorated sharply and both governments announced waves of new tariffs in a stand-off that is dragging on the global economy. (AFP)