Stocks Whipsaw as Traders Face Conflicting Trade War Signals

Stocks in the United States rose on Thursday after a sharp decline the day before, as upbeat economic data and a conciliatory statement from the Chinese government eased investors’ anxiety about the impact on global growth of the trade war between the two countries.

The positive signs included an increase in retail sales in the United States in July, according to the Commerce Department, and stronger-than-expected earnings from Walmart, which raised its outlook for sales this year. The Chinese e-commerce giant Alibaba also released strong financial results.

Wall Street’s early...