Stocks rise amid US-China trade optimism

Thomson Reuters

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York

Stocks jumped Thursday following a lower-than-expected US inflation reading and optimism that Washington and Beijing could avoid further escalations in a trade war that has put nearly all products shipped between the two countries at risk of facing import taxes. The dollar fell, and Treasury yields inched higher.

Here's the scoreboard:

Dow Jones industrial average: 26,146.06 +147.14 (+0.57%)

S&P 500: 2,900.23 +11.31 (+0.39%)

Nasdaq Composite: 8,013.71+59.48 (+0.75%)

1. The US and China plan to head back to the negotiating table. Senior US officials invited Chinese counterparts to sit down for trade talks before the US follows through with proposed tariffs on roughly $200 billion worth of Chinese products.
2. Consumer prices in the US rose less than expected in August. The consumer price index increased 0.2% last month, compared with economist expectations for a 0.3% rise, as increasing energy costs were offset by declines in apparel and healthcare costs.
3. The Central Bank of the Republic of Turkey raised its benchmark interest rate sharply. The 625 basis point hike to 24% underscored the central bank's intent to remain independent of Turkish President Recep Tayyip Erdogan, a self-proclaimed "enemy" of interest rates who has increasingly tried to wield influence over monetary policy since his reelection this year.
4. Citing uncertainty over Brexit, the Bank of England held rates steady at 0.75%. Separately, the European Central Bank kept policy unchanged and confirmed plans to end a large scale bond-buying program this year.
5. Global oil supply hit a record high last month. Production around the world hit 100 million barrels a day for the first time in August, the Energy Information Administration said, despite falling output in several OPEC member countries. Crude prices slipped nearly 3% following the report.

And a look at the upcoming economic calendar:

• US retail sales numbers are out.
• The University of Michigan reports its latest consumer sentiment reading.