US STOCKS-Wall St rises as trade hopes drive tech gains; S&P at record-high

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* Trump says China trade talks 'back on track'
* Chipmakers surge on trade relief
* Boeing drops on report of Dreamliner 787 subpoena
* Casino operators rise on higher Macau revenue
* Indexes up: Dow 0.30%, S&P 0.55%, Nasdaq 0.88%

(Updates to early afternoon)
By Shreyashi Sanyal
July 1 (Reuters) - Wall Street's main indexes rose on
Monday, with the S&P 500 hitting an all-time high, as technology
stocks gained on growing optimism around U.S.-China trade talks
and a likely reprieve for Chinese telecoms company Huawei.
"We're right back on track," U.S. President Donald Trump
said after the world's two largest economies agreed to restart
trade talks.
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. Tech stocks .SPLRCT , Wall Street's top performers so far
in 2019, jumped 1.22%, with heavyweight Apple Inc's AAPL.O
1.7% gain providing the maximum support.
Chipmakers with a sizable revenue exposure to China jumped,
fueling a 2.30% gain in the Philadelphia Semiconductor index
.SOX . Huawei suppliers Intel Corp INTC.O rose 0.1%, while
Micron Technology Inc MU.O gained 4%.
"The outcome between Xi and Trump was probably the best that
could be expected," said Robert Pavlik, chief investment
strategist and senior portfolio manager at SlateStone Wealth LLC
said.
"Now with a trade truce and quite likely an eventual trade
agreement coming online, the technology space, which is heavily
connected to Asia, would be an area of the market you want to
take a bet on."
Stocks saw their steepest sell-off this year in May 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 helped the S&P
500 and the Dow Jones indexes post their best June performance
in generations.
Despite the latest development in talks, traders still
expect the Fed's next move will be a rate cut 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 boosting chances of a rate cut.
June factory activity data is evident of the impact tariffs
and tensions are having on global growth, said Lindsey Bell,
investment strategist at CFRA Research in New York.
At 12:54 p.m. ET, the Dow Jones Industrial Average .DJI
was up 80.44 points, or 0.30%, at 26,680.40 and the S&P 500
.SPX was up 16.15 points, or 0.55%, at 2,957.91.
The Nasdaq Composite .IXIC was up 70.21 points, or 0.88%,
at 8,076.46. Shares of Microsoft Corp MSFT.O , Alphabet Inc
GOOGL.O , NFLX.O and Amazon.com Inc AMZN.O also boosted the
tech-heavy index.
Gains on the Dow were limited by a 1.7% 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 6.3%, 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 16.1%, 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 decliners by a 1.67-to-1 ratio
on the NYSE and by a 1.50-to-1 ratio on the Nasdaq.
The S&P index recorded 59 new 52-week highs and two new
lows, while the Nasdaq recorded 113 new highs and 19 new lows.