Stocks rose on Thursday, led by shares of technology companies, as comments from Chinese officials about trade negotiations with the United States lifted investor sentiment that has been dented by growing worries of a recession.
China’s commerce ministry said both sides were discussing the next round of talks scheduled in September and hoped United States officials could cancel the planned additional tariffs to avoid an escalation.
President Trump said in a Fox News radio interview that trade talks were scheduled for Thursday “at a different level,” but did not provide additional details. Tariff-sensitive tech stocks jumped nearly 2 percent, bolstered by gains in Apple and Microsoft.
[How 4 companies struggle to navigate Trump’s trade uncertainty.]
Chip makers, which draw a large part of their revenue from China, also gained, sending the Philadelphia chip index up 2.8 percent.
“China is giving the U.S. another chance because we have seen weaker data coming out of both sides and it is important for them to extend the olive branch,” said Larry Adam, chief investment officer at Raymond James in Baltimore.
Dollar General Corp was the top gainer among S&P 500 companies; its shares rose 10 percent after the company released an upbeat full-year profit forecast.
Still, the three main indexes are on course to log their worst monthly performance since a sell-off in May, on fears that tit-for-tat tariffs will drive the global economy into a recession.
Investors will keep a close watch on the monthly jobs numbers and manufacturing data next week that could affect the likelihood of another rate cut from the Federal Reserve at its mid-September meeting.
The Trump administration on Wednesday made official its additional 5 percent tariff on $300 billion in Chinese imports and set collection dates of Sept. 1 and Dec. 15, prompting hundreds of American companies to warn of price increases.