The S&P 500 rose 0.4%, the Dow added over 100 points, and the Nasdaq gained 0.7% on Thursday as investors digested mixed economic data and a positive development in US-China relations. Presidents Trump and Xi spoke by phone, agreeing to resume trade talks and reportedly resolving a key dispute over rare earth exports. On the economic front, initial jobless claims rose unexpectedly to 247K, the highest since October 2023, suggesting possible labor market weakness. Meanwhile, unit labor costs rose more than previously estimated, adding to inflation concerns. Markets are now focused on Friday’s jobs report for further clues on the economy. Most megacap tech stocks traded higher, including Nvidia (+0.9%), Microsoft (+0.8%), Apple (+0.8%), Amazon (+2.5%), Meta (+0.7%) and Alphabet (+1.1%). However, Tesla dropped 3.5% due to soft European sales and CEO Elon Musk’s public criticism of Trump’s tax bill.