Whilst the stock market started the day out on the backfoot, US stocks actually ended in positive territory on Tuesday, despite global trade uncertainty weighing on worldwide growth.
The S&P 500 had rallied almost 7 per cent in June on hopes the two largest economies in the world would find a way to end their trade war.
Technology stocks led the gains, helping the tech-heavy Nasdaq composite join the record-breaking club.
The broad S&P 500 Index of large-cap stocks rose 0.8% to 2,995.82, with gains reported across all 11 primary sectors.
"With the modestly positive agreement to restart trade negotiations between the USA and China, the bullish narrative now pivots to the Fed meeting at the end of July, when it is overwhelmingly expected to lower the overnight rate by a quarter point", Ameriprise Chief Market Strategist David Joy told the WSJ. In corporate news, shares of Symantec Corp. jumped at the open after reports that chip maker Broadcom Inc. was in talks to buy the antivirus software company. The third record high close in as many days also pushed the index closer to breaching the 3,000 mark.
The S&P 500 index was flat at 2,963.
Novak Djokovic gets his Wimbledon title defence off to a comfortable start
But the big-serving 33-year-old only returned to the tour at Queen's last week after missing three months with an elbow injury. Out of the challengers to Djokovic, Nadal and Federer, Dominic Thiem is believed to be the greatest threat.
ADP's monthly report on private-sector payrolls showed manufacturing employment rose 7,000 in June, but was the only goods-producing industry to report gains. Broadcom climbed 4.3 per cent and Micron Technology gained 3.9 per cent. Apple and Microsoft also rose.
Tesla Inc (TSLA.O) rose 4.61% after the electric carmaker set a record for quarterly vehicle deliveries after months of questions about demand for its luxury electric cars. Trading will close Wednesday at 1:00 p.m.
"Providing strength to the markets "dovish" tone is the nomination of Christine Lagarde to take the reins of the European Central Bank later this year with many believing that she is willing to provide further market stimulus", said Dean Popplewell, Vice President of Market Analysis at OANDA. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy.
"Certainly the bond market is continuing to hit fresh yield lows so that is a message there is a definite slowing and the central banks will have to cut".
US markets will be closed Thursday for the Independence Day holiday.
Stock investors piled into high dividend-yielding sectors like utilities and REITs after 10-year Treasury yields dipped to the lowest since November 2016 on rising market bets that the Federal Reserve will cut rates this month. Brent crude, the worldwide standard, rose $1.42 to close at $63.82 a barrel.
CURRENCY: The dollar declined to 108.41 yen from Monday's 108.44 yen. The euro fell to US$1.1278 from US$1.1285.