Dow, S&P500, Nasdaq extend winning streak on easing US-China tensions; Nvidia up 2%

Much of this optimism has been driven by a temporary thaw in U.S.-China trade tensions.

Wall Street held firm midweek, with major US indices continuing their upward momentum as investor sentiment remained buoyant after a strong start to the week.

The S&P 500 rose 0.2 percent on Wednesday, staying in positive territory for the year, while the tech-heavy Nasdaq Composite added 0.4 percent. The Dow Jones Industrial Average gained 61 points, also up 0.2 percent.

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Technology stocks once again led the charge. Shares of Nvidia climbed more than 2 percent after the chipmaker said it would deliver 18,000 of its high-end AI chips to Saudi Arabia. Peer semiconductor giant AMD soared over 7 percent after announcing a $6 billion share buyback, bolstering confidence in its long-term growth strategy.

Meanwhile, Bank of America downgraded UnitedHealth to ‘neutral’ from ‘buy’ after the insurer withdrew its full-year guidance. The decision reflects lingering concerns around rising utilization trends and a leadership transition, analysts said. Following a massive 16 percent rout in the previous session, shares were 3 percent in morning trade.

Markets have rallied sharply this week, with the S&P 500 and Dow gaining over 4 and 2 percent, respectively. The Nasdaq has jumped more than 6 percent. Since its April 7 low, the S&P 500 has rebounded over 21 percent, reversing steep losses from earlier in the year.

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Much of this optimism has been driven by a temporary thaw in U.S.-China trade tensions. Both countries slashed tariffs earlier this week, easing fears of a prolonged standoff. Investors cheered the 90-day suspension of planned hikes, once expected to cross 100 percent on some goods, which has helped cool nerves and revive risk appetite.

Meanwhile, it’s been a mixed morning with the regional Stoxx 600 in Europe mainly trading lower and hovering just below the flatline in the early afternoon on course to snap a four-session run in the green.

Luxury fashion house Burberry surged nearly 15 percent, topping the index after unveiling a bold cost-cutting and turnaround strategy. While the plan lifted investor sentiment, analysts cautioned that the road to recovery may be long. At the other end, French train-maker Alstom plunged 17 percent, despite swinging back to positive free cash flow, highlighting lingering concerns over its financial outlook. Meanwhile, German defence firm Renk drew attention following a spike in orders.

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