U.S. stocks finished higher Thursday as optimism that the U.S. and Mexico can work out a deal before costly tariffs kick in next week helped power the market to its third straight gain.
A modest rally gained strength in the final hour of trading after Bloomberg reported the U.S. was considering delaying a 5 percent tariff on Mexican goods that is set to go into effect on Monday.
The report came as the two countries held a second day of trade talks. Both sides claimed to be making progress, but President Donald Trump insisted earlier in the day that a “lot of progress” had to be made before he would call off the tariffs.
Stocks gave up more ground Monday, but the market has bounced back and is on track to end the first week of June with solid gains.
The S&P 500 index gained 17.34 points, or 0.6 percent, to 2,843.49. The Dow Jones Industrial Average rose 181.09 points, or 0.7 percent, to 25,720.66. It briefly climbed 260 points.
The Nasdaq composite reversed an early slide, adding 40.08 points, or 0.5 percent, to 7,615.55. The Russell 2000 index of smaller companies dropped 3.25 points, or 0.2 percent, to 1,503.54.