Stocks rebounded Wednesday after investors returned to the tech sector following a late-day swoon in the previous session.
The S&P 500 had traded higher for most of Tuesday's session and approached an all-time record but turned lower following a slide in technology stocks and uncertainty over the next U.S. coronavirus stimulus package. The S&P 500 posted its first decline in eight trading sessions on Tuesday.
Despite the market reaction, stalled talks in Washington on more coronavirus aid was weighing on sentiment.
Senate Majority Leader Mitch McConnell (R-Ky.) has called for a restart of negotiations between the Trump administration and congressional Democrats, saying it was "time for everybody to get back to the table" to discuss a fifth coronavirus aid package.
He told Fox News that the "stalemate needs to be ended. It doesn't make any difference who says let's get together again, but we ought to get together again."
U.S. and Chinese trade representatives, meanwhile, are set to discuss aspects of the phase one trade deal in the coming days. Bloomberg reported that Beijing also will push for discussions over the forced sale of TikTok's U.S. operations and the banning of WeChat to be raised during the meeting, which comes amid heightened political tensions between the world's two biggest economies.
A virtual meeting likely will take place as soon as this week though a date hasn’t been finalized, Bloomberg reported, citing people familiar with preparations for the talks.
However, Jim Cramer thinks the S&P 500 can push higher without a deal.
In the video above, Cramer breaks down why earnings could be the tailwind markets are looking for.