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Stocks closed higher on Thursday on renewed hope that a resolution to a trade dispute with China could be on the horizon. Investors also cheered strong quarterly results from WalMart and Cisco Systems.
The Dow Jones Industrial Average hurtled 396.32 points, or 1.6%, to 25,558.73, its biggest one-day jump since April 10, when it surged 429 points — led by gains in WalMart, Cisco Systems, Boeing and Caterpillar.
The S&P 500 heightened 22.32 points to 2,840.69, as consumer staples and telecom outperformed.
The NASDAQ popped 32.41 points to 7,806.52
The S&P 500 also closed 1.1% below its record high set on Jan. 26 while the NASDAQ finished the session 1.6% off its all-time high. The Dow, meanwhile, is about 4% removed from an all-time high.
National Economic Council Director Larry Kudlow confirmed to the media earlier reports saying China and the U.S. will hold a fresh round of trade talks later in August, giving investors hope that the two world's largest economies can solve an ongoing trade spat.
The U.S. and China have been engaged in a trade spat recently as the U.S. slaps tariffs on Chinese imported goods. China, meanwhile, has retaliated with tariffs of its own on U.S. goods. Investors worry that an escalation in trade fears could lead to a global economic slowdown and lower corporate profits
Shares of Boeing gained 4.3%, and Caterpillar, yet another bellwether for global trade, popped 3.2%. Both companies get a large share of their revenue from outside the U.S., so their stocks are highly sensitive to trade-related news. Boeing recorded its biggest one-day gain since January while Caterpillar logged in its best day in more than a month.
Stocks also got a boost from strong WalMart quarterly earnings. The results sent Walmart shares surging 9.3% after the company reported its biggest jump in U.S. sales in a decade. The surge led WalMart to contribute about 60 points to the price-weighted Dow. The results also lifted shares of Target, which gained 1.7%.
Cisco Systems also reported better-than-expected earnings, sending its stock up 3%. The company's results got a boost from an income surge from segments like cyber security and applications.
Economically speaking, U.S. weekly jobless claims totaled 212,000 last week, slightly below than estimates of 215,000. Meanwhile, housing starts totaled 1.168 million in July, well below the expected 1.26 million.
Prices for the benchmark for the 10-year U.S. Treasury fell, raising yields to 2.87% from Wednesday’s 2.86%. Treasury prices and yields move in opposite directions.
Oil prices dipped 48 cents at $65.49 U.S. a barrel.
Gold prices decreased $4.30 to $1,180.70 U.S. an ounce.
