Stocks rallied on Thursday as positive revelations on the trade front boosted investor sentiment. Prior to the open, a report out of China suggested leaders in Beijing do not plan to immediately retaliate against the next round of U.S. tariffs. Additionally, the Chinese Ministry of Commerce expressed a willingness to resolve the trade dispute in a calm manner. Separately, President Trump stated that U.S. and Chinese delegates planned to resume negotiations via phone at some point today. Amid the optimism, the Dow jumped 326 points. The S&P 500 advanced 1.3%, while the Nasdaq Composite climbed 1.5%.
Economic data was also in focus. The second reading of GDP showed the U.S. economy expanded at a 2.0% annualized pace during the April-June period, downwardly revised from the initial 2.1% reading. The report also showed personal consumption increased by 4.7%, above a preliminary 4.3% rate and the largest gain since 2014. Separately, wholesale inventories matched consensus expectations, while initial jobless claims ticked up to 215,000 from 211,000 in the most recent week. Treasuries declined, with the yield on the benchmark 10-year note up three basis points to 1.50%.
Ten of 11 S&P 500 sectors finished in positive territory as Technology shares paced the gains. The Industrials and Financials groups also outperformed, adding 1.8% and 1.5% respectively. In earnings, Dollar General jumped 10.7% after the discount retailer topped consensus estimates on the top and bottom line and raised full-year sales and profit guidance. In commodities, WTI crude gained 1.4% to $56.58/barrel. COMEX gold slipped 0.9% to $1,529.60/ounce.