US close: Dow bounces back as energy stocks rally on news of tanker attacks

Wall Street closed higher on Thursday after Donald Trump declined to set a deadline on slapping tariffs on a further $325bn-worth of Chinese imports and energy stocks rallied on the back of two oil tankers being damaged in suspected attacks off the coast of Iran.

At the close, the Dow Jones Industrial Average was up 0.39% at 26,106.77, while the S&P 500 had gained 0.41% to 2,891.64 and the Nasdaq Composite closed 0.57% firmer at 7,837.17.

The Dow Jones closed 101 points higher after recording back-to-back losses in the last two sessions as Trump said he would not soften his stance unless Beijing agreed on as many as five "major points".

Traders and investors remained focused on global trade developments on Thursday as tensions between the two largest economies in the world intensified yet again.

While Donald Trump has long talked about pulling Xi Jinping aside later this month at a G20 meeting in Osaka, expectations that trade officials from the US and China will actually be able to clinch a deal faded in recent days.

However, the President said late on Wednesday: "My deadline is what's up here," while, pointing to his head, adding he had a "feeling" a deal could be reached.

Elsewhere, oil prices recovered some of their recent losses after a tanker incident in the Gulf of Oman, bouncing back from a sell-off in the previous session when Crude futures tumbled as much as 4% to near five-month lows.

West Texas Intermediate was changing hands 2.13% firmer at $52.23 a barrel, while Brent Crude was ahead 2.23% to $61.31.

In terms of data, the number of Americans filing for unemployment benefits unexpectedly rose last week, according to figures from the Labor Department.

US initial jobless claims increased by 3,000 from the previous week's revised level to 222,000. The previous week's level was revised up by 1,000. Economists had been expecting a drop to 216,000.

Elsewhere, US import prices dropped more than they had in the last five months in May, according to the Labor Department.

Import prices slid 0.3% last month, the biggest decline since December, while data for April was revised down to show import prices rising 0.1% instead of climbing 0.2% as previously reported.

Export prices fell 0.2% in May after nudging up 0.1% in April.

On the corporate front, Target closed 0.045% firmer after the retailer raised its quarterly dividend and Tyson Foods advanced 0.77% after announcing it would launch a new plant-based meat product to compete with Beyond Meat.

Chevron and ExxonMobil shares rose 0.60% and 0.86%, respectively, as the markets digested news of oil tanker blasts in the Gulf of Oman.

Broadcom slumped 7.50% in extended trading after the group's earnings report suggested a second-half rebound for chips looked less likely.