Stocks post 3rd straight day of gains on hope for US-China trade deal

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China, Federal Reserve are the two biggest drivers of the market: Heather Zumarraga

Vision 4 Fund senior vice president Heather Zumarraga discusses why the U.S.-China trade dispute and the Federal Reserve’s rate hikes are the two biggest drivers of the stock market.

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.

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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.

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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.

TickerSecurityLastChange%Chg
NUENUCOR CORP56.87+0.99+1.77%
UNPUNION PACIFIC CORPORATION151.97-0.51-0.33%
APTVAPTIV PLC70.35+0.53+0.76%

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.”

TickerSecurityLastChange%Chg
I:DJIDOW JONES AVERAGES24207.16+141.57+0.59%
SP500S&P 5002616.1+5.80+0.22%
I:COMPNASDAQ COMPOSITE INDEX7034.6932+10.86+0.15%

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.

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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.