Wall Street index climbed on Wednesday, receiving a boost from financial stocks as investors focused on solid economic data and trade war concerns went to the background while the Nasdaq notched its third consecutive record closing high.
The Dow Jones Industrial Average edged up 346.41 points, or 1.4 percent, to 25,146.39. The S&P 500 rose 23.55 points, or 0.86 percent, to 2,772.35 and the Nasdaq Composite increased 51.38 points, or 0.67 percent, to 7,689.24.
Late in the trading day, White House economic adviser Larry Kudlow said that U.S. President Donald Trump will meet French President Emmanuel Macron and Canadian Prime Minister Justin Trudeau during a G7 summit this week.
While he said that Trump is not retreating from the tough stance he has taken on trade, the comments seemed to reassure investors.
Earlier reports citing people privy to the matter said that U.S. officials were considering an offer by China to import an additional $70 billion of American gods over a year as the Chinese government attempts to prevent a possible trade war.
Last week, Trump pushed on with imposing tariffs- 25 percent on steel and 10 percent on aluminum on Canada, the EU and Mexico, with Mexico responding by hitting back with tariffs on American products including steel, pork and bourbon.
The S&P financial sector, which advanced 1.8 percent, was the S&P's biggest gainer as bank stocks rose along Treasury yields. Higher interest rates tend to boost bank profits. The bank index edged up 2.3 percent as the sector was also helped by an increase in mortgage applications for the first time in seven weeks.
The 10-year Treasury note yield increased close to a two-week high after data indicated that the U.S. trade deficit unexpectedly declined to a seven-month low in April, supporting the outlook for an acceleration of domestic economic growth in the second quarter.