Banking shares strong as US stocks gain

Wall Street stocks rose early on Wednesday, looking past lingering trade war fears, as banking shares gained in expectation that higher interest rates would boost profits.

About 20 minutes into trading, the Dow Jones Industrial Average was at 24 902.11, up 0.4%.

The broad-based S&P 500 advanced 0.2% to 2 753.28, while the tech-rich Nasdaq Composite Index edged up 0.1% to 7 647.08, adding to Tuesday's record.

Investors in US stocks in recent weeks have absorbed a series of aggressive trade actions and statements from President Donald Trump's administration that have generated retaliatory moves from Mexico, Canada and other allies that many fear could spiral into an all-out trade war.

At the same time, US economic data has remained fairly strong, keeping stocks from dropping too low.

Large banks, such as Bank of America and JPMorgan Chase, were up more than 1% as US 10-year Treasury yields advanced closer to 3.0% in anticipation of more Federal Reserve interest rate hikes.

Tesla Motors surged 5.1% as chief executive Elon Musk expressed confidence that the company would reach production targets for its Model 3 sedan.

US Steel gained 2.6% after announcing it would restart a blast furnace in Granite City, Illinois, hiring 300 new workers. The company also said it expects full-year operating earnings at or near the high end of its previously announced range.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER
We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
ZAR/USD
16.39
(-0.39)
ZAR/GBP
21.52
(-0.35)
ZAR/EUR
19.41
(-0.27)
ZAR/AUD
11.62
(-0.12)
ZAR/JPY
0.16
(-0.32)
Gold
1913.52
(-0.41)
Silver
24.78
(-0.63)
Platinum
885.01
(+0.21)
Brent Crude
42.06
(-3.35)
Palladium
2398.00
(+1.07)
All Share
55345.49
(+0.13)
Top 40
50905.12
(+0.11)
Financial 15
10138.60
(+1.83)
Industrial 25
74577.70
(-1.31)
Resource 10
54447.94
(+1.23)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
27% - 41 votes
No, I did not.
48% - 74 votes
My landlord refused
25% - 39 votes
Vote