New York (CNN Business) The Dow and the broader stock market rallied sharply on Thursday, logging its best day in three weeks, after US and Chinese officials said they will resume trade talks.

The escalating tensions between the world's two largest economies has weighed on markets throughout the summer. But the new talks, on the agenda for early October , are spurring optimism.

Dow INDU Stocks soared in response, with therising 379 points, or 1.4%, closing at its best level since July 31. It was its best one-day percentage gain since August 13.

S&P 500 SPX Nasdaq Composite COMP Thefinished 1.3% higher, logging its best day since August 16, while theclimbed 1.8%. It was the index's best session since August 13, according to Refinitiv. All three indexes also finished higher on Wednesday, retracing the prior days losses.

"Even though expectations for a robust trade deal are low, with global growth continuing to deteriorate as trade tensions mount, investors are relieved just to see talks are back on," said Alec Young, managing director of global markets research at FTSE Russell, in emailed comments.

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