Wall Street rallied during Wednesday's session despite mounting U.S.-China tensions. U.S. Secretary of State Mike Pompeo stated on Wednesday that the United States certified that Hong Kong was no longer politically autonomous from China. The ruling came after Beijing released new national security measures that pressure Hong Kong's special status within China. In addition, both parts of Congress ruled in favor of a law that would allow Congress to impose sanction on Chinese officials for human rights violations. President Donald Trump stated on Tuesday that he will issue his administration's course of action by the end of the week.

The Federal Reserve also published May's Beige Book on Wednesday, highlighting the state of the central bank's regional districts on or before May 18 ahead of the Fed's next meeting. The book noted that, "consumer spending fell further as mandated closures of retail establishments remained largely in place during more of the survey period. Declines were especially severe in the leisure and hospitality sectors, with very little activity at travel and tourism businesses."

In addition, "auto sales were substantially lower than a year ago, although several Districts noted recent improvement. A majority of Districted reported sharp drops in manufacturing activity, and production was notably weak in auto, aerospace, and energy-related plants."

Here's how the market settled on Wednesday:

S&P 500 Index (SPY  ): +1.48% or +44.36 points to 3,036.13

Dow Jones Industrial Average (DIA  ): +2.21% or +553.16 points to 25,548.27

Nasdaq Composite Index (QQQ  ): +0.77% or +72.14 points to 9,412.36

In Major Stock News, large department stores like Nordstrom (JWN  ), Gap (GPS  ) and Kohl's (KSS  ) staged a break out as investors poured money into stocks dependent on the economic reopening. Travel stocks--American Airlines (AAL  ), Delta (DAL  ), Carnival (CCL  ), Norwegian Cruise (NCLH  ), Royal Caribbean (RCL  ), Southwest (LUV  ), and United (UAL  )--alongside big banks--Bank of America (BAC  ), Citigroup (C  ), Goldman Sachs (GS  ), JPMorgan (JPM  ), and Morgan Stanley (MS  )--also rallied due to the more positive outlook. Investors also moved to shed stay-at-home related stocks like Amazon (AMZN  ), Peloton (PTON  ) and Zoom (ZM  ) amid reopening enthusiasm. Twitter (TWTR  ) and Facebook (FB  ) shares fell after President Donald Trump threaten to regulate social media companies.

In Stock Sector News, every sector joined in with Wednesday's rally despite U.S.-China tensions looming over the market. The performance gains were as follows: Financials +4.34%, Industrials +3.34%, Real Estate +2.14%, Consumer Staples +1.56%, Consumer Discretionary +1.29%, Energy +1.16%, Utilities +1.07%, Health Care +1.05%, Materials +1.02%, Communication Services +0.55% and Information Technology +0.54%.

In Commodity and Currency News, July oil futures dropped on Wednesday, with West Texas Intermediate (USO  ) declining around -6% to $32 per barrel and Brent Crude (BNO  ) falling about -4% to $35 per barrel. Gold (GLD  ) and the Dollar (UUP  ) slightly increased on Wednesday, showing the market's undertones of uncertainty towards U.S-China relations.

For Thursday, Investors will focus on the Labor Department's weekly jobless claims report as well as U.S-China tension headlines.