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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 1.49%, S&P 1.21%, Nasdaq 1.45%
(Updates to early afternoon)
By Uday Sampath Kumar
Sept 5 (Reuters) - U.S. stocks hit a one-month high 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 economic data eased concerns of a domestic
slowdown.
The benchmark S&P 500 .SPX surpassed its 50-day moving
average, a key indicator for short-term momentum, and is now
just 1.76% away from its record high.
Earlier, China's Commerce Ministry said its trade team would
lay the groundwork with their U.S. counterparts in mid-September
for the October talks, providing relief for markets around the
globe that have been bruised by the drawn-out trade war.
Technology stocks .SPLRCT provided the biggest boost to
S&P 500, rising 1.72%, while financials .SPSY jumped 1.96%,
the most among the 11 major S&P sectors.
Interest rate-sensitive banks .SPXBK surged 2.62%,
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 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 13:06 ET, the Dow Jones Industrial Average .DJI was up
392.12 points, or 1.49%, at 26,747.59, the S&P 500 .SPX was up
35.56 points, or 1.21%, at 2,973.34 and the Nasdaq Composite
.IXIC was up 116.06 points, or 1.45%, at 8,092.94.
In deal news, insurer Prudential Financial Inc PRU.N
agreed to acquire online insurance startup Assurance IQ Inc for
$2.35 billion. Shares of Prudential fell 2.6%.
Among losers were the defensive utilities .SPLRCU , real
estate .SPLRCR and consumer staples .SPLRCS sectors.
Advancing issues outnumbered decliners by a 1.95-to-1 ratio
on the NYSE and by a 2.70-to-1 ratio on the Nasdaq.
The S&P index recorded 54 new 52-week highs and no new lows,
while the Nasdaq recorded 67 new highs and 35 new lows.
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