Stocks inch up as tech giants rally

U.S. stocks closed marginally higher with the Dow ending flat, the S&P 500 posting a slight gain and the Nasdaq climbing three tenths of one percent.

Amazon and Google parent Alphabet each gained more than 1%, helping to keep the S&P 500 in positive territory.

Amazon said it plans to invest at least $20 billion in Pennsylvania to expand data center infrastructure, adding to the billions of dollars it committed to the expansion of artificial intelligence.

Meanwhile, investors watched negotiations between the U.S. and China in London, where top officials from both countries sought to mend a trade dispute that has rattled financial markets for much of the year.

Eric Diton, president and managing director of The Wealth Alliance, says the two largest economies need each other to thrive financially.

“We just saw the export numbers for China right for may exports down 34.5% to the US. That's not a blip. That's Armageddon, especially if you're a country who is already hurting with regard to overbuilt real estate and too much debt, etcetera. They just don't have the leeway and the stamina for this fight. So, both sides have some leverage. The US needs these rare earth minerals for automobiles. They are crucial. I mean, the auto companies are actually scared. They are scrambling.”

Other stocks on the move included Warner Bros Discovery which fell about 3% after the company said it would separate its studios and streaming business from its struggling cable television networks.

Immediately after the announcement, it had surged as much as 13%.

And shares of Qualcomm rose 4% after the U.S. chipmaker agreed to acquire British semiconductor company Alphawave for about $2.4 billion, as it expands into the booming AI data center market.