Stocks Opened Higher as China Tamped Down Fears of Trade-war Escalation

U.S. stocks opened higher on Thursday after the latest update in the shifting U.S.-China trade war narrative suggested Beijing would not retaliate against the Trump administration’s most recent set of tariff increases. The Dow Jones Industrial Average lately rose 295.64 points, or 1.14%, to 26,331.74. The S&P 500 climbed 34.77 points, or 1.20%, to 2,922.71. The Nasdaq Composite gained 120.13 points, or 1.53%, to 7,977.01.

Oil futures found support Thursday as Beijing moved to tamp down fears of an immediate escalation of the U.S.-China trade war. West Texas Intermediate crude for October delivery rose 40 cents, or 0.7%, to $56.18 a barrel. November Brent crude was up 1 cent at $59.94 a barrel.

A spokesman for China’s commerce ministry on Thursday said the country wouldn’t immediately respond to the latest round of tariffs, helping to defuse worries around an escalating U.S.-China trade war.

The number of Americans filing applications for unemployment benefits rose moderately, pointing to sustained labor market strength despite slowing economic growth. Initial claims for state unemployment benefits increased 4,000 to a seasonally adjusted 215,000 for the week ended Aug. 24, the Labor Department said on Thursday.

The U.S. economy slowed in the second quarter. Gross domestic product increased at a 2.0% annualized rate, the Commerce Department said in its second reading of second-quarter GDP on Thursday. That was a downward revision from the 2.1% pace estimated last month.

Best Buy Co Inc forecast annual same-store sales below analysts’ estimates on Thursday, citing new U.S. tariffs set to be imposed on Chinese imports, such as phones, video game consoles and other electronics. The company narrowed its full-year same-store sales forecast to a rise of 0.7% to 1.7%, from 0.5% to 2.5%.