US STOCKS-Trade hopes lift S&P to record as tech leads

* Stocks climb after U.S., China agree to restart talks
* Chipmakers surge on trade relief
* Dow up 0.44%, S&P 500 up 0.77%, Nasdaq up 1.06%

(Updates to market close)
By Chuck Mikolajczak
NEW YORK, July 1 (Reuters) - U.S. stocks climbed on Monday,
but finished off earlier highs, led by gains in technology
stocks on optimism for progress in U.S.-China trade talks and
signs of a likely reprieve for Chinese telecom company Huawei.
Despite losing some of its initial steam, the S&P 500 still
managed to close at a record high after the United States and
China agreed on Saturday to resume trade talks. In addition,
President Donald Trump also offered concessions including no new
tariffs and an easing of restrictions on Huawei Technologies Co
Ltd HWT.UL , while China agreed to make unspecified new
purchases of U.S. farm products. Still, stocks had given up a good portion of their earlier
gains as investors contemplated whether the U.S. Federal Reserve
would be as dovish as has been anticipated recently and caution
crept back in for what is likely to be a lightly traded week due
to the July Fourth holiday.
"There was celebration on the open and it was a case where
if some of this trade uncertainty goes away, even if it is not
solved, so to speak, that decreases the likelihood the Fed needs
to step in, or at least step in as aggressively as people were
thinking about a week and a half ago," said Willie Delwiche,
investment strategist at Robert W. Baird in Milwaukee.
Tech stocks .SPLRCT , Wall Street's top performers so far
in 2019, jumped 1.45%, with heavyweight Apple Inc's AAPL.O
1.83% gain providing the biggest boost.
Chipmakers with a sizable revenue exposure to China jumped
nearly 5% at their session high before also pulling back, last
showing a 2.65% gain in the Philadelphia Semiconductor index
.SOX . Huawei supplier Micron Technology Inc MU.O gained
3.9%.
The Dow Jones Industrial Average .DJI rose 117.47 points,
or 0.44%, to 26,717.43, the S&P 500 .SPX gained 22.57 points,
or 0.77%, to 2,964.33 and the Nasdaq Composite .IXIC added
84.92 points, or 1.06%, to 8,091.16.
Stocks saw their steepest sell-off this year in May, a 6.6%
decline, after a breakdown in the U.S.-China trade talks sparked
concerns of a global economic slowdown.
But hopes that the Federal Reserve would cut interest rates
to preserve a strong run of U.S. economic growth, and a dovish
turn by central banks around the globe, helped the S&P 500 and
the Dow Jones indexes post their best June performance in
decades.
Despite the latest development in talks, traders still
anticipate the Fed's next move will be a rate cut of at least a
quarter of a percentage point at its July 30-31 policy meeting.
Data showed growth in manufacturing cooled in the United
States in June while factory activity shrank across much of
Europe and Asia, further supporting expectations of a rate cut.
Gains on the Dow were held in check by a 2.1% drop in Boeing
Co BA.N after a report that federal prosecutors had subpoenaed
records relating to the production of the 787 Dreamliner in
South Carolina. Wynn Resorts Ltd WYNN.O jumped 5.9%, the most on the S&P,
as gambling revenue in the Chinese territory of Macau rose more
than expected in June. Shares of peers Melco Resorts &
Entertainment Ltd MLCO.O and Las Vegas Sands Corp LVS.N also
rose. Coty Inc COTY.N tumbled 13.5%, falling the most on the
S&P, after the company said it would overhaul its operations and
write down about $3 billion in value of its brands acquired from
Procter & Gamble Co PG.N . Advancing issues outnumbered declining ones on the NYSE by a
1.57-to-1 ratio; on Nasdaq, a 1.50-to-1 ratio favored advancers.
The S&P 500 posted 62 new 52-week highs and two new lows;
the Nasdaq Composite recorded 122 new highs and 31 new lows.
About 7.04 billion shares changed hands in U.S. exchanges,
compared with the 7.15 billion daily average over the last 20
sessions.