US STOCKS-Trump's softer stance on trade pushes Wall Street higher

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* Shares of tariff-sensitive Apple, Boeing rise
* All 11 major S&P 500 sectors in positive territory
* U.S. core capital goods orders rise; shipments tumble
* Indexes up: Dow 0.86%, S&P 500 0.83%, Nasdaq 1.01%

(Updates prices, comments, adds background)
By Akanksha Rana
Aug 26 (Reuters) - Wall Street's main indexes rose on Monday
as U.S. President Donald Trump eased his stance on trade with
China, calming investor nerves after an intense feud between the
world's top two economies last week sent stocks tumbling.
Shares of tariff-sensitive companies rose in response, with
Apple Inc's AAPL.O 2% gain boosting technology stocks
.SPLRCT , while a 1.1% rise in Boeing Co BA.N lifted the Dow
Jones Industrial Average .DJI .
Chipmakers, which heavily rely on China for their revenue,
rose, with the Philadelphia Semiconductor index .SOX adding
1.2%.
Trump said on Monday Beijing had contacted Washington
overnight to say it wanted to return to the negotiating table,
adding that talks between the two countries were "more
meaningful" than any time. The U.S. president also said he was confident that China was
sincere about wanting a trade deal with the United States.
"If there is one thing we have learned over the last year or
so is things can change very quickly," said Mike Loewengart,
vice president, Investment Strategy at E*TRADE Financial Corp.
"The sentiment is optimism on account of the hopes that
there will be some progress on the trade front, coupled with
some encouraging economic metrics that reinforced the strength."
Data from the Commerce Department showed new orders for key
U.S.-made capital goods rose modestly in July, while shipments
fell by the most in nearly three years. The report could back
the case for the Federal Reserve to cut interest rates again
next month. Concerns about the global economy slipping into recession
and uncertainty over the pace of U.S. interest rate cuts have
made investors nervous about how far the longest cycle of U.S.
expansion would survive. The S&P 500 is now 5% off its record
high.
The benchmark S&P 500 index .SPX logged its worst run of
weekly losses on Friday since a selloff in late May as both
sides threatened to slap more tariffs on each other's goods.
Despite the broad-based rally on Monday that saw all 11 S&P
500 sectors rise, Wall Street's fear gauge, the CBOE Volatility
index .VIX , hit its highest level in more than a week.
"This is the type of market environment that is likely to
persist. We would advise investors to prepare for a protracted
trade war and we can expect additional market volatility,"
Loewengart added.
The Dow Jones Industrial Average .DJI rose 220.38 points,
or 0.86%, to 25,849.28, the S&P 500 .SPX gained 23.58 points,
or 0.83%, to 2,870.69 and the Nasdaq Composite .IXIC added
78.16 points, or 1.01%, to 7,829.92.
Among other stocks, Celgene Corp CELG.O rose 3.1% after
Amgen Inc AMGN.O said it would buy the company's psoriasis
drug Otezla, clearing the way for Bristol-Myers Squibb BMY.N
to go ahead with its $74 billion deal for Celgene. Shares of
Bristol-Myers jumped 3.2%. Shares of Dish Network Corp DISH.O jumped 4% to the top of
the S&P 500, after brokerage Raymond James double upgraded the
stock to "strong buy" from "market perform." Advancing issues outnumbered decliners by a 2.40-to-1 ratio
on the NYSE and by a 1.92-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and 16 new
lows, while the Nasdaq recorded 13 new highs and 108 new lows.