Financial Markets                      05/07 09:45

   

   NEW YORK (AP) -- Stocks rose on Wall Street Wednesday as China steps up 
measures to shore up its economy and gears up for trade talks with the U.S.

   The S&P 500 index rose 0.4% in morning trading Wednesday. The Dow Jones 
Industrial Average rose 242 points, or 0.6%, as of 9:59 a.m. Eastern. The 
Nasdaq composite rose 0.3%.

   The Walt Disney Co. soared 9.9% after easily beating analysts' profit 
targets, raising its profit forecast and adding more than a million streaming 
subscribers.

   The encouraging update from the entertainment giant comes amid broader 
worries that tariffs will potentially sap consumer spending and hurt a wide 
range of companies, especially those focusing on discretionary items such as 
entertainment and travel.

   An unpredictable trade policy by President Donald Trump has prompted many 
companies to cut or withdraw financial forecasts for the year. Super Micro 
Computer, which makes servers, fell 4.4% after trimming its revenue forecast 
for the year amid economic uncertainty.

   Technology companies face an especially difficult situation amid the trade 
war between the U.S. and China. U.S. tariffs against China are now at 145% and 
China tariffs on the U.S. are at 125%.

   Tensions between the world's two biggest economies have a chance at easing, 
though. Top U.S. officials are set to meet with a high-level Chinese delegation 
this weekend in Switzerland. At the same time, China has plans to cut interest 
rates and take other measures to help it absorb the economic impact from 
tariffs.

   Wall Street is also looking ahead to the latest update on interest rates and 
policy from the Federal Reserve. The central bank is expected to hold its 
benchmark interest rate steady today. Chair Jerome Powell and other Fed 
officials have signaled that they want to see how tariffs impact consumer 
prices and the economy.

   Treasury yields held relatively steady. The yield on the 10-year Treasury 
fell to 4.29% from 4.30% late Tuesday.

   Markets in Europe mostly lost ground, while markets in Asia rose.

   ___

   AP business writers Elaine Kurtenbach and Matt Ott contributed to this 
report.

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