U.S. equity indexes rallied on Wednesday in relatively light trading on hopes that China trade talks will lead to new deal and a slew of mostly positive economic data.

The Dow Jones Industrial Average rose 42.66 points to 28,164.34 while the S&P 500 climbed 13.17 points to 3,153.69 and the Nasdaq Composite Index gained 57.24 points to 8,705.18.

Volume on the New York Stock Exchange totaled 2.39 billion shares with 1,840 issues advancing, 159 setting new highs, and 1,128 declining, with 23 setting new lows.

Active movers were led by NIO Inc. (NIO), General Electric (GE) and Aurora Cannabis (ACB).

The Federal Reserve’s Beige Book reported U.S. economic activity “expanded modestly” from October through mid-November, similar to the pace of growth seen in the prior reporting period. Most districts reported “stable to moderately growing consumer spending.” In manufacturing, the central bank noted, more districts “reported an expansion in the current period than the previous one, though the majority continued to experience no growth.”

Employment continued to rise slightly overall, even as labor markets remained tight across the U.S. The near-term outlook for the economy “generally remained positive” the Fed added.

On Tuesday evening Trump told former Fox News host Bill O’Reilly that he wants to make certain any deal with China is fair to the U.S.

“I’m holding it up because it’s got to be a good deal,” he said. “We can’t make a deal that’s like, even. We have to make a deal where we do much better, because we have to catch up.”

Trump also said he thinks Chinese President Xi Jinping is eager to agree to a trade pact. “I know him and I know he’d like to make it happen,” he said.

If a phase one deal is not completed by Dec. 15, Trump may levy 15% tariffs on $160 billion of Chinese imports.

Gross domestic product in the U.S. climbed at a 2.1% annualized pace in the third quarter, slightly higher than the initial 1.9% estimate.

“There’s a lot to be thankful for in today’s GDP revision, namely the strength of the consumer,” said Mike Loewengart, vice president of investment strategy at E-Trade Financial Corp. “If our economy is one thing, it’s resilient.”

The Labor Department said initial jobless claims fell by 15,000 to a seasonally adjusted 213,000 for the week ended Nov. 23. Economists had projected claims would decrease to 221,000. The four-week moving average of initial claims fell by 1,500 to 219,750 during the week.

Orders for durable goods rose 0.6% in October, however most of that increase was linked to military goods. Economists had expected a 1.1% drop. Orders for civilian products were flat.

The Chicago Purchasing Management Index dropped to 43.2 in October -- the lowest level since December 2015 -- from 47.1 in the prior month. Economists expected a reading of 48.3 for October.

U.S. consumer spending rose 0.3% in October, above economists’ forecast a 0.2% increase while personal income was unchanged. However, wages were up 0.4%.

The personal consumption expenditure inflation barometer rose 0.2% in October, while the core measure of inflation, which excludes the volatile food and energy sectors, edged up 0.1%.

Pending home sales fell by 1.7% in October from the prior month. Sales dropped in every U.S. region except the Northeast. The National Association of Realtors attributed the decrease to higher mortgage rates and a lack of homes available for sale.

“We can be thankful that the economy is still in a good place with economic growth a little better, a rebound in business durable equipment expenditures, and a sharp decline in joblessness which together tell the story that recession is nowhere to be seen and should not be on anyone’s radar in 2020,” said Chris Rupkey, MUFG’s chief economist.

“Political uncertainty, impeachment, trade war with China and the world, none of these headlines as yet show an economy that is about to go down,” he added.

Overnight, Asian markets were mixed as the Hang Seng gained 0.15% while Japan's Nikkei 225 rose 0.28% and China's Shanghai Composite fell 0.13%.

European markets were mixed with the FTSE 100 up 0.46% while Germany's DAX rose 0.27% and France's CAC 40 was down 0.01%.

Crude oil futures slipped 0.48% to $58.13 per barrel and Brent crude gained 0.06% at $63.05. Gold futures were down 0.45%.

The euro was down 0.18% to $1.1001 while the pound sterling rose 0.3% to $1.2905.

The yield on the 10-year Treasury rose 1.55% to 1.767% while yield on the 30-year Treasury gained 1.31% to 2.193%.

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