By Akane Otani and Ben St. Clair 
   -- U.S. stocks rebound 
 
   -- Walmart soars on earnings 
 
   -- Copper, oil stabilize 

U.S. stocks soared Thursday, putting the Dow Jones Industrial Average on course for its biggest one-day gain in four months, as upbeat earnings reports and stabilizing commodities prices helped dim investors' fears about the global economy.

Stocks around the world had slumped just a day earlier as fears about an economic crisis in Turkey spread through a variety of markets, pulling everything from copper to oil prices lower.

Much of the slide had been driven by concerns among investors that what had begun as a relatively limited pullback in emerging markets could trigger a more violent, durable reversal across risky assets around the world. It was the latest shake-up for the stock market, which has struggled to reach new highs this year as investors have grappled with sliding commodities prices, fractious trade policies and the flattest yield curve in years -- which has historically signaled unease about long-term economic growth.

Some of investors' worries appeared to fade Thursday as copper and the Turkish lira stabilized and a flurry of upbeat data and earnings reports pointed to sustained strength in the U.S. economy.

Many investors have said the recent volatility they have witnessed in emerging markets has only strengthened their conviction that the U.S. stock market will continue outpacing the rest of the world.

Signs that Washington and Beijing were willing to resume negotiations on trade also helped reassure investors, sending stocks and Treasury yields higher.

"What we've seen in the last two days has certainly been a story of contradictions -- but the fact of the matter is that we're still trading near all-time highs and the consumer is still incredibly healthy," said JJ Kinahan, chief market strategist at TD Ameritrade. "This rally can continue."

The Dow Jones Industrial Average rose 433 points, or 1.7%, to 25596 -- on track for its biggest one-day percentage gain since April 10. The S&P 500 added 0.9%, nearing its January record, and the Nasdaq Composite advanced 0.6%.

Shares of companies that have swung on trade tensions rallied after officials in China and the U.S. signaled Thursday that the two countries would hold lower-level talks on trade later in August. The discussions would be the first since May, when talks fell through and both sides later slapped penalties on tens of billions of dollars in each other's goods.

Caterpillar jumped 3.2%, while Century Aluminum added 7.8% and Boeing rose 4.5%.

Gains in the consumer-staples sector also helped buoy major indexes, with Walmart soaring 10% after it reported sales rising at the fastest pace in more than a decade for the most recent quarter. The retailer's earnings -- coming a day after Commerce Department data showed retail sales jumping in July -- offered the latest sign that consumers, a key driver of U.S. growth, are on strong footing.

Technology shares also rose, with Cisco Systems jumping 3.2% after reporting its third-consecutive quarter of revenue growth.

"When you look at what companies are currently saying and most importantly how they're describing what earnings could be like over the next 12 to 18 months, it looks pretty good," said Mark Stoeckle, chief executive of Adams Funds.

The bright domestic outlook has helped investors look past volatile swings in other markets, Mr. Stoeckle said.

Elsewhere, stocks in Europe clawed back some of their declines from Wednesday, boosted by gains in the basic-resources and technology sectors. The Stoxx Europe 600 edged up 0.5%.

Major indexes in Asia extended a recent rout, however, as technology giants including Tencent Holdings and Samsung Electronics slid. The Shanghai Composite Index fell 0.7% and Hong Kong's Hang Seng ended 0.8% lower.

A stronger dollar and trade tensions have put pressure on developing economies in recent months. The rapid fall of the Turkish lira added to the strain as investors have worried about the possibility of the rout spreading beyond the country's borders.

Still, some of those fears have abated in recent days as the lira has chipped away at its losses, recently rising 1.8% against the U.S. dollar. In a show of support Wednesday, Qatar said it would inject $15 billion into Turkey with a package that includes direct investments and deposits.

When it comes to investing in emerging markets, "the timing is key," said Laurent Denize, co-chief investment officer of ODDO BHF Asset Management. "The timing is linked to politics."

Write to Akane Otani at akane.otani@wsj.com

(END) Dow Jones Newswires

August 16, 2018 16:04 ET (20:04 GMT)