The US markets ended higher on Wednesday after President Donald Trump announced trade deals with Japan and the Philippines. The U.S. trade deal with Japan features a 15 percent  tariff on Japanese exports and includes a commitment from Tokyo to invest $550 billion in the United States and open its markets for American vehicles, rice, and other agricultural goods. Additionally, Trump claimed the U.S. would receive 90 percent of profits from the agreement and that the pact could generate hundreds of thousands of American jobs. Furthermore, the new trade pact with the Philippines would make the county an open market with zero tariffs on U.S. goods, while Manila would pay a 19 percent duty. Moreover, trader overlook report released by the National Association of Realtors (NAR) showing that existing home sales in the U.S. pulled back by more than expected in the month of June. NAR said existing home sales slumped by 2.7 percent to an annual rate of 3.93 million in June after jumping by 1.0 percent to a revised rate of 4.04 million in May. Meanwhile, the street had expected existing home sales to fall by 0.5 percent to an annual rate of 4.01 million from the 4.03 million originally reported for the previous month.

On sectoral front, significant strength has been seen in oil service stocks, with the Philadelphia Oil Service Index spiking by 4.1 percent. Besides, substantial strength was visible among computer hardware stocks, as reflected by the 2.3 percent surged by the NYSE Arca Computer Hardware Index.

Dow Jones Industrial jumped 507.85 points or 1.14 percent to 45,010.29, Nasdaq climbed 127.33 points or 0.61 percent to 21,020.02 and S&P 500 advanced 49.29 points or 0.78 percent to 6,358.91.