Stocks go higher on growing hopes for trade talks

NEW YORK — U.S. stocks jumped Thursday as China and the U.S. said they will hold their first trade discussions in months, a potential sign of progress toward ending their trade war.

China will send a trade envoy to Washington later this month in a new attempt to end the trade dispute before it causes major damage to the global economy. The two sides haven’t talked since early June. Energy and metals prices and shares of industrial companies turned higher.

Walmart soared after reporting its strongest growth in sales in more than a decade. Other companies that make and sell basic necessities also rose.

Jason Draho, the head of asset allocation for UBS, said investors are eager for the two countries to start making progress and resolve their differences. He added that China may be changing course because its economy has slowed.

“The data we’ve seen from China recently has showed slowing growth,” he said. “It’s possible they decided ‘OK, we need to take a different approach’ and come to the table offering a little more.”

The S&P 500 index climbed 22.32 points, or 0.8 percent, to 2,840.69. The Dow Jones Industrial Average jumped 396.32 points, or 1.6 percent, to 25,558.73 as Walmart and Boeing made big gains.

The Nasdaq composite rose 32.41 points, or 0.4 percent, to 7,806.52.

The Russell 2000 index of smaller-company stocks added 15.09 points, or 0.9 percent to 1,685.75.

China and the U.S. have been in conflict for months over issues including Beijing’s technology policy and its trade surplus with the U.S. After the latest round of talks failed to produce much progress, both countries put taxes on $34 billion in each other’s imports.

Those tariffs are set to rise next week, and both countries have threatened even larger increases as early as September.

Walmart posted its biggest gain in more than a decade in sales at stores open at least a year, and its online revenue grew 40 percent, a faster pace than it reported in the first quarter. The stock jumped 9.3 percent to $98.64, which wiped out its losses from earlier this year.

Other retailers and consumer goods companies also edged higher. Target added 1.7 percent to $82.07 and Procter & Gamble rose 1.7 percent to $83.69 while McDonald’s climbed 1.2 percent to $161.73.

Banks rallied as interest rates increased. Bond prices turned lower again. The yield on the 10-year Treasury note rose to 2.87 percent from 2.85 percent.

Oil prices were steady after a sharp drop a day earlier. U.S. crude inched up 0.7 percent to settle at $65.46 a barrel in New York. Brent crude, the standard for international oil prices, picked up 0.9 percent to $71.43 per barrel.

Metals prices also turned higher. Gold dipped 0.1 percent to $1,184 an ounce. Silver rose 1.8 percent to $14.71 an ounce. Copper added 2.2 percent to $2.62 a pound. That made up for much of Wednesday’s loss, but copper prices are still down 20 percent since early June.

Stocks have swung wildly over the last week. Thursday marked the Dow’s largest gain since April. The day before that, stocks took their biggest loss in six weeks.

Global markets slumped Friday and Monday as investors worried about Turkey’s currency crisis, then rebounded Tuesday only to fall again Wednesday on rising concerns about China’s economic growth.