Wall Street's main index ended higher in a choppy trade on Wednesday.
The stocks have risen positive after President Donald Trump reported that he was considering a one-month delay in car fares in Canada and Mexico. The shares expanded after the White House announcement confirmed that Trump had agreed to delay tariffs on some vehicles.
Dow Jones' industrial average closed at 485.60 points (1.1%) at 43,006.59
The S&P 500 rose 1.1%, while the Nasdaq rose 1.5%. Previously, Wall Street lost ground following mixed economic data, and investors were worried about the trade war.
“We're on a customs roller coaster,” said Wasif Latif, chief investment officer at Salmaya Partners in New Jersey. “Economic data, the Fed and everything that's all seem to be pushed into the background for now. It's just a reminder of how these policies have an impact in the long term and how the market is responding to it.”
Earlier in the session, the ISM report showed an unexpected increase in the service sector growth in February. However, signs of rising input prices eased optimism.
Separately, ADP data showed that private pay increased in February at the slowest pace of seven months. Investors are currently awaiting a key pay report on Friday.
Risky shares have been sold over the past few weeks as investors worry that Trump's trade policy will amplify inflationary pressures, slow the economy and eat up corporate profits. Several reports suggest a cooling economy.
“The long-term trend we had, as a rally from the low pandemic, is basically tapped out and we have cards on top of it.
Carmaker Stocks rose, with Ford up 5.8% and General Motors up 7.2%. Tesla scored 2.6%.
Chipmaker Intel fell 2.4% following Trump's statement that lawmakers should remove laws that provide subsidies to the semiconductor industry.
CrowdStrike fell 6.3% after cybersecurity companies predicted first-quarter revenue to fall slightly below estimates.
Huntington Ingalls rose 12% after Trump said his administration would create a shipbuilding office in the White House and provide tax incentives.
