* Trump threatens duties on $300 bln worth of Chinese goods
* ECB cuts growth forecasts for 2020, 2021
* Energy stocks gain on higher oil prices
* AMD rises on Morgan Stanley upgrade
* Dow up 0.11%, S&P up 0.07%, Nasdaq off 0.07%
(Updates to open)
By Medha Singh and Amy Caren Daniel
June 6 (Reuters) - U.S. stocks treaded water on Thursday as
hopes of a rate cut helped counter fears of a further escalation
in the trade war with China following comments from President
Donald Trump.
Trump said he would decide on more China tariffs "probably
right after the G20," which follows his threat overnight to hit
tariffs on "at least" another $300 billion worth of Chinese
goods. "It feels like an escalation of tensions and may be an
elongated trade war and we might have to recalibrate lower,"
said Art Hogan, chief market strategist at National Securities
in New York.
"We're up significantly in two days, and at that place it
doesn't take much to roll markets over."
The trade-sensitive industrial sector .SPLRCI fell 0.3%,
the most among the five major sectors trading lower.
Adding to the concerns, the European Central Bank marginally
cut its growth forecasts for the next two years, acknowledging
the risk that Europe's slowdown will be longer and deeper than
expected.
Markets have been roiled by worries of a global economic
slowdown triggered by the ongoing U.S.-China trade spat and the
pervasive uncertainty has led top Federal Reserve officials,
including Chairman Jerome Powell, to hint at a rate cut.
"There is an overarching belief that Chairman Powell is
willing to, if need be, lower rates in the near term," said
Hogan.
The S&P remained on pace for its third straight session of
gains, mainly on hopes of a more accommodative Federal Reserve.
At 9:45 a.m. ET, the Dow Jones Industrial Average .DJI was
up 28.02 points, or 0.11%, at 25,567.59, while the S&P 500
.SPX was up 2.06 points, or 0.07%, at 2,828.21. The Nasdaq
Composite .IXIC was down 5.19 points, or 0.07%, at 7,570.29.
Energy stocks .SPNY , the sector hardest hit by the recent
escalation in trade tensions, rose 1.3%, the most among the
major S&P sectors, as oil prices gained. O/R
The biggest boosts to markets were oil majors Exxon Mobil
Corp XOM.N and Chevron Corp CVX.N , both up about 1.5%.
Advanced Micro Devices Inc AMD.O rose 4.2% after Morgan
Stanley upgraded the chipmaker's stock to "equal-weight" from
"underweight", citing near-term positive catalysts.
Goodyear Tire & Rubber Co GT.O climbed 3.2% after Longbow
Research raised its rating on the tire-maker's stock to
"neutral" from "underperform", saying impact of Mexico tariffs
will be modest on the company for now.
Advancing issues outnumbered decliners by a 1.44-to-1 ratio
on the NYSE and by a 1.09-to-1 ratio on the Nasdaq.
The S&P index recorded 44 new 52-week highs and no new low,
while the Nasdaq recorded 31 new highs and 37 new lows.