(CNBC) – Stocks rose slightly on Wednesday as investors cheered a nearing trade deal between the U.S. and China, though softer measures on payrolls and the service economy kept a lid on optimism.
The Dow Jones Industrial Average climbed 39 points to close at 26,218.13 as Intel and Home Depot outperformed. The S&P 500 gained 0.2% to end the day at 2,873.40, notching a five-day winning streak, as the materials and tech sectors led the way. The Nasdaq Composite advanced 0.6% to 7,895.55.
Chipmakers — which are heavily affected by U.S.-China trade relations —led the tech sector higher. The VanEck Vectors Semiconductor ETF (SMH) climbed 2.3%, led by an 8.5% surge in Advanced Micro Devices. AMD jumped after Nomura Instinet initiated coverage of the stock with a buy rating, citing the company's improving profitability.
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"To a certain degree, a trade deal is already priced in," said Peter Cardillo, chief market economist at Spartan Capital Securities. However, "a trade deal is a win for the United States and the global economy."