U.S. stocks surged on Thursday on expectations of a de-escalation in trade tensions after Washington and Beijing agreed to hold high-level talks next month, while strong U.S. economic data eased fears of a domestic slowdown.
After anxiety about a deepening trade war triggered a sell-off in late July and early August, leading to speculation that a decade-long bull market was ending, the S&P 500 has largely recovered and is now less than 2% short of its July 26 record high close. The benchmark index has climbed 2.4% in the past two sessions.
China and the United States agreed to hold talks in early October in Washington, boosting markets as investors bet on a thaw in the trade war between the world’s two largest economies, which has taken a toll on global growth.
Alternating signs of improvement and deterioration in the U.S.-China trade war, often based on tweets and comments from Trump, have repeatedly sparked volatility on Wall Street in recent months.