Stocks rebound a day after nosedive induced by trade worries

NEW YORK (AP) — Stocks regained some ground in afternoon trading today after a nosedive at the start of the week as the U.S. and China escalate their trade war.

Investors have been dealing with creeping uncertainty since last week after President Donald Trump's decision to raise tariffs on Chinese goods. China responded by raising its own tariffs, and the U.S. is considering expanding tariffs again to cover all imported Chinese goods.

The escalation surprised investors who had expected a deal sooner rather than later. They now have to expect much more volatility as the world's largest economies head toward a full-blown trade war that could threaten economic growth.

Technology stocks, which would stand to suffer heavily in a prolonged trade war, led the market higher after taking a beating the day before. Qualcomm and Cisco both rose, along with Oracle, Adobe and others.

Banks also rose. JPMorgan Chase, Bank of America and others moved higher.

Video game maker Take-Two rose after its fourth quarter profit beat Wall Street forecasts. Disney gained ground after announcing a deal with Comcast to take full control of the video streaming service Hulu. Amazon, Mattel and other companies that cater to consumers ticked higher.

Utilities, a safe-play sector that investors favor when they're feeling fearful, were the only sector to fall. A day earlier, they were the only winners in the market.