U.S. stocks rallied Thursday after retail behemoth Walmart Inc. reported its best sales growth in more than a decade and China’s Ministry of Commerce said it would hold talks with American officials to resolve the trade war between the two countries. The dollar fell for the first time in six days and Treasuries dipped.
All major equity benchmarks were higher. The S&P 500 Index rose roughly 1 percent, led by telephone and consumer staples shares, and the Dow Jones Industrial Average added around 380 points, or 1.5 percent. Food retailers skyrocketed after Walmart, the top performing S&P 500 company, said grocery sales spurred its strong results. Mining stocks and commodities rebounded from Wednesday’s slide as silver and copper rallied. Gold bounced back after hitting a 19-month low. Oil climbed past $65 a barrel.
The possibility of a breakthrough in the trade standoff between China and the U.S. is helping to shake off some of the elevated caution that’s infected global markets over the past week as Turkey has plunged into a currency crisis.
The Turkish lira rallied for a third day after the country’s Treasury and Finance Minister Berat Albayrak said on an investor call that the government has ruled out capital controls and that reining in inflation and narrowing the current-account deficit are its policy priorities. But the currency pared some of its gains after U.S. Treasury Secretary Steven Mnuchin said there’d be more sanctions for Turkey if the country didn’t release an American pastor who the Trump administration says is being illegally detained.
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