A rebound in technology companies and banks helped reverse an early slide for U.S. stocks Thursday, breaking a five-day losing streak for the market.
Health care and industrial stocks also rose, offsetting losses in retailers, homebuilders, utilities and other sectors. Energy stocks also helped lift the market.
British bank stocks plunged and the British pound slumped amid discord over a new deal for Britain’s departure from the European Union next spring.
The late-afternoon market rebound marked the latest episode of volatile trading for the market this week.
The S&P 500 index rose 28.62 points, or 1.1 percent, to 2,730.20. The Dow Jones Industrial Average gained 208.77 points, or 0.8 percent, to 25,289.27. The Nasdaq composite climbed 122.64 points, or 1.7 percent, to 7,259.03. The Russell 2000 index of smaller companies picked up 21.62 points, or 1.4 percent, to 1,524.12.
Thursday’s market rebound coincided with a Financial Times report citing unnamed sources that said the U.S. trade representative, Robert Lighthizer, has told some executives that a planned escalation in January of U.S. tariffs on imported goods from China are now on hold.
“This bit of information helped to move the market higher today, especially technology stocks,” said Quincy Krosby, chief market strategist at Prudential Financial.
Washington and Beijing resumed talks over their spiraling trade dispute this week ahead of a meeting between Presidents Xi Jinping and Donald Trump, China’s Commerce Ministry said Thursday.
Technology sector stocks accounted for much of the market’s gain. Cisco Systems rose 5.5 percent to $46.77 a day after the company reported quarterly results that topped Wall Street’s forecasts.
Financial sector stocks rebounded after taking heavy losses a day earlier. JPMorgan Chase gained 2.6 percent to $110.07.
Several big retailers slumped. Dillard’s slid 14.8 percent to $62.85 after the retailer’s quarterly earnings fell far short of what investors were expecting. Macy’s gave up 2.9 percent to $32.27.
Traders also unloaded shares in homebuilders. KB Home had its steepest drop in more than three years after the homebuilder said new-home orders are down sharply in its current quarter versus a year ago. The stock plunged 15.3 percent to $17.61.
While a strong economy and job market helped boost home sales earlier this year, rising mortgage rates and home prices are becoming hurdles for many would-be buyers. The annual rate of new U.S home sales has dropped 15.3 percent since May, eliminating much of the strength in sales from the first five months of the year.
Energy stocks got a boost from the pickup in oil prices. Noble Energy gained 3.1 percent to $29.50.
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