(CNBC) -- Stocks were boosted on Wednesday by a news report from Bloomberg that said the U.S. and China were edging closer to a trade deal, leading the major averages to snap a three-day slide.
The Dow Jones Industrial Average closed 146.97 points higher, or 0.5% at 27,649.78. The S&P 500 gained 0.6% to end the day at 3,112.76 while the Nasdaq Composite advanced 0.5% to 8,566.67.
“I am surprised, if I’m honest, that the market is reacting to these headlines,” said Neil Dwane, global strategist at Allianz Global Investors. “It’s like we’ve all become Pavlov’s dog. Every time someone says ‘trade deal,’ we go up or we go down.”
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