Wall Street gains as China boosts its economy ahead of US trade talks

Stocks rose on Wall Street on Wednesday as China steps up measures to shore up its economy and gears up for trade talks with the US.

The S&P 500 index rose 0.4 per cent in morning trading on Wednesday. The Dow Jones Industrial Average rose 242 points, or 0.6 per cent, as of 9.59am Eastern. The Nasdaq composite rose 0.3 per cent.

Walt Disney soared 9.9 per cent after easily beating analysts’ profit targets, raising its profit forecast and adding more than a million streaming subscribers.

The encouraging update from the entertainment giant comes amid broader worries that tariffs will potentially sap consumer spending and hurt a wide range of companies, especially those focusing on discretionary items such as entertainment and travel.

An unpredictable trade policy by President Donald Trump has prompted many companies to cut or withdraw financial forecasts for the year. Super Micro Computer, which makes servers, fell 4.4 per cent after trimming its revenue forecast for the year amid economic uncertainty.

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China unveils policy package to guard against US tariffs ahead of trade talks in Switzerland

Technology companies face an especially difficult situation amid the trade war between the US and China. US tariffs against China are now at 145 per cent and China tariffs on the US are at 125 per cent.