Major US stocks rose sharply as China's optimistic comments on trade negotiations with the US reassured investors worried about the prospect of a recession.

Gao Feng, spokesman for the Chinese Ministry of Commerce, said the two sides are discussing the next round of talks scheduled for September, and China hopes US officials can cancel the introduction of additional tariffs to avoid escalation of trade tensions. In addition, he also made it clear that China would not immediately respond to planned tariffs.

Market participants also drew attention to several important macroeconomic reports. Thus, a report by the Department of Commerce showed that the US economy slowed down in the second quarter slightly more than originally expected, since the strongest growth in consumer spending over 4.5 years was offset by a decrease in exports and a smaller increase in stocks. According to the report, GDP grew in the second quarter by 2.0% year on year. This was revised from an initial rating of 2.1%. The economy grew by 3.1% in January-March. In the first half of the year, GDP grew by 2.6%. The downward revision met the expectations of economists.

At the same time, the Department of Labor has shown that the number of initial applications for unemployment benefits in the United States has risen modestly, indicating a steady labor market, despite a slowdown in economic growth. According to the ministry, the number of applications for unemployment benefits increased by 4,000 to 215,000, seasonally adjusted for the week ending August 24. The data for the previous week were revised to show 2,000 applications more than previously reported. The increase in claims for benefits last week was in line with economists' expectations.

A report by the National Association of Realtors (NAR) showed that contracts for the purchase of previously owned homes unexpectedly fell in July, suggesting that households might remain out of the market due to increased concern about the economy. According to the report, the NAR index of pending home sales transactions fell 2.5% last month to 105.6 points. Economists predicted that the index would remain unchanged.

Most DOW components completed trading in positive territory (25 out of 30). The biggest gainers were Caterpillar Inc. (CAT; + 2.55%). Johnson & Johnson (JNJ; -0.50%) were outsiders.

All S&P sectors recorded an increase. The industrial goods sector grew the most (+ 1.8%).

At the time of closing:

Dow 26,362.25 +326.15 +1.25%

S&P 500 2,924.58 +36.64 +1.27%

Nasdaq 100 7,973.39 +116.51 +1.48%

U.S. stock-index futures surged on Thursday after China provided some upbeat-sounding trade comments, which calmed investors unnerved by the prospect of a recession. 

Global Stocks:

(company / ticker / price / change ($/%) / volume)

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