Stocks climb again as trade talks resume

Stocks closed broadly higher on Wall Street for the second straight day Thursday as the U.S. and China kicked off a new round of negotiations in their long-running trade war.

Technology companies and banks led the rally as investors turned hopeful that the 13th round of trade talks will bring both sides closer to ending the costly conflict between the world’s two biggest economies.

Traders were encouraged after President Donald Trump said he would meet with Chinese Vice Premier Liu He, who is leading Beijing’s negotiating team, at the White House on Friday. He also said China wants to make a deal.

“It’s really good that Trump is meeting him, because that increases the odds that some type of positive news may happen tomorrow,” said Brad Bernstein, senior portfolio manager at UBS Global Wealth Management.

The S&P 500 rose 18.73 points, or 0.6 percent, to 2,938.13. The benchmark index had been up about 1 percent earlier in the day. The Dow Jones Industrial Average gained 150.66 points, or 0.6 percent, to 26,496.67. It had been up as much as 257 points.

The Nasdaq added 47.04 points, or 0.6 percent, to 7,950.78. The Russell 2000 index of smaller companies picked up 5.90 points, or 0.4 percent, to 1,485.36.

Major indexes in Europe closed broadly higher. Asian markets finished mixed.

Thursday’s rally extended the S&P 500’s gains from the day before, though the index remains on track for its fourth-straight weekly loss.

Markets have been jittery this week as investors assessed the potential for a breakthrough in the trade talks even as tensions escalated between Washington and Beijing. The U.S. blacklisted a group of Chinese technology companies over alleged human rights violations earlier this week. Meanwhile, China has clashed with the NBA and U.S. companies over free-speech issues.

The trade war has dragged on for 15 months, inflicting economic damage on both countries and raising fears of a global recession.

The Trump administration has slapped tariffs on more than $360 billion worth of Chinese imports. Tariffs on $250 billion worth of goods are set to increase to 30 percent from 25 percent on Oct. 15, and new tariffs will kick in on another $160 billion on Dec. 15. That would extend import taxes to virtually everything China ships to the United States. China has hit back by targeting about $120 billion in U.S. goods, focusing on farm products.

While representatives of both countries have failed to make progress in resolving the trade conflict, there is more pressure this time for them to reach some type of agreement, even if it’s merely to keep additional tariffs from kicking in, Bernstein said.