Stocks advanced for a third day on Thursday as investors clung to hopes that President Trump would soften his stance on trade. The Dow Jones industrial average rose 1.2 percent, the S&P 500 gained 2.0 percent and the Nasdaq was up 2.7 percent. Bond yields and the dollar declined while oil prices rose.

Even as a Chinese spokesman dismissed suggestions from Trump that a trade deal is pending, investor hopes for progress on deals with India, South Korea and Japan bolstered equities. Many investors construe reports about Trump and his team as a sign that Trump is preparing to pull back significantly on trade policy.

The market also latched onto comments from Federal Reserve officials that were seen as dovish. Cleveland Fed President Beth Hammack told CNBC the Fed should wait for hard data before making a policy change but she said the FOMC could make a move if there is convincing data by June. Fed Governor Chris Waller said the Fed would react if there is a serious falloff in the job market. He suggested the Fed would need to wait for the second half for clarity on tariff effects.

Among sectors, big technology had a good day Thursday. Other leaders included credit cards, autos, machinery and industrial metals. Lagging were rails, media, food & beverage, and managed care.

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