Stocks rose Tuesday afternoon -- the market's third consecutive day of gains -- on optimism that China and the United States are close to settling an economically damaging trade dispute.
U.S. Commerce Secretary Wilbur Ross predicted that Beijing and Washington could reach a trade deal that "we can live with" as officials from the world's two biggest economies resumed talks looking to end their trade dispute.
All three major equity indexes closed at or near 1 percent higher. The broad-based S&P 500 climbed to a three-week high.
Shares of industrial and transportation companies led key averages higher on hopes for an eventual Sino-American trade deal.
Crude oil prices are up seven days in a row on trade optimism and OPEC production cuts. The commodity jumped 2.41 percent to $49.69 per barrel.
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Steel stocks were big winners, too, as President Trump has begun calling for a steel wall rather than a concrete wall along the southern border.
The president has shifted from calling for a concrete wall to focusing on a “steel barrier.”
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|I:COMP||NASDAQ COMPOSITE INDEX||13950.218259||+163.95||+1.19%|
In Asian markets on Tuesday, China’s Shanghai Composite lost 0.3 percent, while Hong Kong’s Hang Seng index rose 0.2 percent.
Japan’s Nikkei closed up 0.8 percent.
In European trading, London’s FTSE gained 1 percent, Germany’s DAX rose 1 percent and France’s CAC added 1.5 percent.
FOX Business' Ken Martin contributed to this report.