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* U.S., China to hold high-level talks in October
* Technology stocks boost; defensive sectors fall
* U.S. services sector growth rises; private jobs jump
* Indexes up: Dow 1.69%, S&P 1.42%, Nasdaq 1.66%
(Updates market action, adds data, comments)
By Uday Sampath Kumar
Sept 5 (Reuters) - U.S. stocks hit one-month highs on
Thursday on hopes of a de-escalation in trade tensions after
Washington and Beijing agreed to hold high-level talks next
month, while strong U.S. economic data allayed some concerns of
a slowdown.
Wall Street's three main indexes touched their highest level
since Aug. 1 and the benchmark S&P 500 index .SPX breached its
50-day moving average, a key indicator for short-term momentum.
China's Commerce Ministry said its trade team would lay the
groundwork with their U.S. counterparts in mid-September for the
October talks. Technology stocks .SPLRCT provided the biggest boost to
S&P 500, rising 2.05%, while financials .SPSY jumped 2.31%,
the most among the 11 major S&P sectors.
Interest rate-sensitive banks .SPXBK surged 3%, following
a rise in U.S. Treasury yields. US/
"The trade news was the spark that lit this rally and then
the economic data extended it," said Michael Antonelli, market
strategist at Robert W. Baird in Milwaukee.
The ADP (NASDAQ:ADP) National Employment Report, considered a precursor
to the Labor Department's more comprehensive jobs report, showed
U.S. private employers' payrolls grew at the fastest pace in
four months in August, led by big gains in service-sector jobs.
Another private survey showed growth in the U.S. services
sectors accelerated in August, rebounding from its weakest level
in nearly three years, as new orders rose to their highest level
since February amid trade worries.
"Manufacturing is in a bit of a global slump, but if you
look at the other economic data, like the services and jobs
reports, none of them point to an economy that is teetering on a
recession," Antonelli said.
The upbeat reports eased concerns of an economic downturn,
which was exacerbated by data on Tuesday that showed a
contraction in U.S. factory activity in August. Investors will
keep a close watch on the crucial nonfarm payrolls data due on
Friday.
At 11:41 a.m. ET the Dow Jones Industrial Average .DJI was
up 446.46 points, or 1.69%, at 26,801.93, the S&P 500 .SPX was
up 41.58 points, or 1.42%, at 2,979.36 and the Nasdaq Composite
.IXIC was up 132.80 points, or 1.66%, at 8,109.68.
In deal news, insurer Prudential Financial Inc (NYSE:PRU) PRU.N
agreed to acquire online insurance startup Assurance IQ Inc for
$2.35 billion. Shares of Prudential (LON:PRU) fell 2.81%.
Among losers were the defensive utilities .SPLRCU , real
estate .SPLRCR and consumer staples .SPLRCS sectors.
Advancing issues outnumbered decliners by a 2.26-to-1 ratio
on the NYSE and by a 3.01-to-1 ratio on the Nasdaq.
The S&P index recorded 53 new 52-week highs and no new low,
while the Nasdaq recorded 66 new highs and 27 new lows.