US STOCKS-Wall Street rallies as trade optimism lifts tech stocks

(For a live blog on the U.S. stock market, click LIVE/ or
type LIVE/ in a news window.)
* Trump says China trade talks 'back on track'
* Chipmakers surge on trade relief
* Boeing drops on report of Dreamliner 787 subpoena
* Casino operators rise on higher Macau revenue
* Indexes up: Dow 0.63%, S&P 0.81%, Nasdaq 1.17%

(Updates prices, comments)
By Shreyashi Sanyal
July 1 (Reuters) - Wall Street's main indexes rallied on
Monday, with the S&P 500 hitting an all-time high, as technology
stocks gained on growing optimism around U.S.-China trade talks
and a likely reprieve for Chinese telecoms company Huawei.
The benchmark index .SPX hit an intraday high of 2,977.93
earlier in the session, as the truce agreed upon at the G20
summit boosted risk appetite.
"We're right back on track," U.S. President Donald Trump
said after the world's two largest economies agreed to restart
trade talks. Trump also offered concessions including no new
tariffs and an easing of restrictions on Huawei Technologies Co
Ltd HWT.UL , while China agreed to make unspecified new
purchases of U.S. farm products. Tech stocks .SPLRCT , which are Wall Street's top
performers so far in 2019, jumped 1.57%, with heavyweight Apple
Inc's AAPL.O 2.5% gain providing the maximum support.
Chipmakers with a sizable revenue exposure to China jumped,
fueling a 3% gain in the Philadelphia Semiconductor index
.SOX . Huawei suppliers Intel Corp INTC.O rose 0.7%, while
Micron Technology Inc MU.O surged 5.2%.
"The outcome between Xi and Trump was probably the best that
could be expected," said Robert Pavlik, chief investment
strategist and senior portfolio manager at SlateStone Wealth LLC
said.
"Now with a trade truce and quite likely an eventual trade
agreement coming online, the technology space, which is heavily
connected to Asia, would be an area of the market you want to
take a bet on."
Stocks saw their steepest sell-off this year in May after a
breakdown in the U.S.-China trade talks sparked concerns of a
global economic slowdown.
But hopes that the Federal Reserve would cut interest rates
to preserve a strong run of U.S. economic growth helped the S&P
500 and the Dow Jones index post their best June performance in
generations.
Despite the latest development in talks, traders still
expect the Fed's next move will be a rate cut at its July 30-31
policy meeting.
At 11:06 a.m. ET, the Dow Jones Industrial Average .DJI
was up 167.07 points, or 0.63%, at 26,767.03 and the S&P 500
.SPX was up 23.70 points, or 0.81%, at 2,965.46.
The Nasdaq Composite .IXIC was up 93.94 points, or 1.17%,
at 8,100.18. Shares of Microsoft Corp MSFT.O , Alphabet Inc
GOOGL.O , NFLX.O and Amazon.com Inc AMZN.O also boosted the
tech-heavy index.
Gains on the Dow index were limited by a 0.7% drop in Boeing
Co BA.N after a report that federal prosecutors had subpoenaed
records relating to the production of the 787 Dreamliner in
South Carolina. A rise in oil prices lifted energy stocks .SPNY by about
1%. OPEC and its allies looked set to extend supply cuts until
at least the end of 2019 at their meeting in Vienna this week.
O/R
Wynn Resorts Ltd WYNN.O jumped 7.2%, the most on the S&P,
as gambling revenue in the Chinese territory of Macau rose more
than expected in June. Shares of peers Melco Resorts &
Entertainment Ltd MLCO.O and Las Vegas Sands Corp LVS.N also
rose.
Coty Inc COTY.N tumbled 17.1%, falling the most on the
S&P, after the company said it would overhaul its operations and
write down about $3 billion in value of its brands acquired from
Procter & Gamble Co PG.N . Advancing issues outnumbered decliners by a 2.19-to-1 ratio
on the NYSE and by a 1.88-to-1 ratio on the Nasdaq.
The S&P index recorded 57 new 52-week highs and one new
low, while the Nasdaq recorded 108 new highs and 14 new lows.