Wall Street opens higher ahead of Powell speech

• Trade optimism boosts US stocks on Wednesday.
• Upbeat GDP report helps market sentiment improve.
• Investors are focused at FOMC Chairman Powell's speech.

Earlier in the day, Morgan Stanley reported that the Chinese Yuan was likely to gather strength as a trade deal between the U.S. and China was close. Yesterday, White House economic adviser Kudlow also sounded optimistic about the upcoming G20 summit, at which President Trump and his Chinese counterpart Xi is expected talk about trade over dinner.

Previewing the event, “Trade has been an issue for a long time and any hint that the China-U.S. trade dispute could be resolved could make a pick up in global growth,” Kim Forrest, senior portfolio manager at Fort Pitt Capital Group in Pittsburgh, told Reuters on Wednesday.

The trade-related S&P 500 Industrials and Materials indexes were last seen gaining 0.72% and 0.46%, respectively. Furthermore, the second estimate of the third-quarter GDP growth came in at 3.5% according to the U.S. Burea of Economic Analysis and helped the risk appetite take control of the market action. At the moment, the risk-sensitive S&P 500 Technology Index was up 1%.

As of writing, the Dow Jones Industrial Average was adding 0.75%, the S&P 500 was up 0.45%, and the Nasdaq Composite was gaining 0.65%. Later in the session, FOMC Chairman Jerome Powell will be delivering a speech at the economic club of New York.