NEW YORK: Banking shares led US stocks higher early Friday as investors awaited a key Group of 20 meeting between US President Donald Trump and Chinese President Xi Jinping.

Large banks including Goldman Sachs and JPMorgan Chase climbed two percent or more after Federal Reserve stress tests cleared most of the industry to boost investor payouts.

About 15 minutes into trading, the Dow Jones Industrial Average was up 0.2 percent at 26,574.98.

The broad-based S&P 500 advanced 0.3 percent to 2,933.27, while the tech-rich Nasdaq Composite Index climbed 0.2 percent to 7,980.58.

Anticipation of the G20 talks has hung over the market all week, with investors hoping Trump and Xi make progress on long-stalled negotiations on a trade deal.

Some leading market watchers think the two sides will agree to a cease-fire on new tariffs but not reach a comprehensive agreement.

US data Friday showed consumer inflation softened in May, but personal incomes and spending strengthened during the period.

Among individual stocks, Apple dropped 0.8 percent after the tech giant announced that longtime design chief Jony Ive would step down to start his own firm.

Nike edged up 0.1 percent after it reported a 13 percent decline in fourth-quarter profits to $989 million, due in part to higher company spending on new technology investments.

The company said demand remains strong in China, where sales surged 22 percent during the quarter to $1.7 billion. —AFP