NEW YORK — U.S. stocks are drifting higher Thursday following more signals that the U.S. economy remains solid, for the moment at least.

The S&P 500 was 0.4% higher in midday trading after flipping an early loss of 0.8%. The Dow Jones Industrial Average was up 240 points, or 0.6%, as of 11:05 a.m. Eastern time, and the Nasdaq composite was 0.5% higher.

Market Swings Amid Trade War Uncertainty

Wall Street has been swinging for weeks on a roller-coaster ride, as stock prices veer on uncertainty about what President Donald Trump’s trade war will do to the economy. Stocks got a boost Wednesday after the head of the Federal Reserve said the economy remains solid enough at the moment to leave interest rates where they are.

More data arrived Thursday to bolster that view. One report said slightly fewer U.S. workers filed for unemployment benefits last week than economists expected. It’s the latest sign of a potentially “low fire, low hire” job market.

Another report saying sales of previously occupied homes were stronger last month than economists expected accelerated the stock market’s gains, while a third report said manufacturing growth in the mid-Atlantic region appears to be better than economists expected.

But Fed Chair Jerome Powell also stressed on Wednesday that extremely high uncertainty is making it difficult to forecast what will happen next.

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Corporate Performance and Market Reactions

It’s not just uncertainty about the trade war affecting Wall Street. Accenture fell to one of the market’s larger losses Thursday even though the consulting and professional services company reported slightly better profit and revenue for the latest quarter than analysts expected.

Worries are rising about the hit Accenture may take to its revenue from the U.S. government as Elon Musk leads efforts to cut federal spending. The federal government accounted for 17% of Accenture’s North American revenue last fiscal year, and its stock dropped 6.5%.

The broad U.S. stock market was likely due for its recent drop, which took it more than 10% below its all-time high in just a few weeks, after prices climbed so much faster than corporate profits to make it look too expensive, said Barry Bannister, chief equity strategist at Stifel.

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Future Market Outlook

He said the S&P 500 could bounce higher in the near term, particularly after Fed officials indicated Wednesday they still see room to cut interest rates twice this year. Lower interest rates would give a boost to the economy, as well as prices for investments. The market has also traditionally had “relief rallies” after major, long-term upward runs for stocks cracked.

But Bannister expects stock prices to remain under pressure as the economy’s growth slows more sharply in the second half of the year and as inflation remains stubbornly high. That could create a mild form of “stagflation,” which is something the Fed doesn’t have good tools to fix. The Fed could lower interest rates further to help the economy, but that would also push upward on inflation.

On Wall Street, Darden Restaurants climbed 7.3% after reporting profit for the latest quarter that matched analysts’ expectations. That was despite what the company behind Olive Garden, Ruth’s Chris Steak House and other restaurant chains called “a challenging environment.”

Discount retailer Five Below rose 7.4% after reporting quarterly revenue and profit that topped analysts’ expectations. The Philadelphia company also issued strong sales guidance and said it expects to open 150 stores this year.

In stock markets abroad, London’s FTSE 100 slipped 0.1% after the Bank of England held its main interest rate steady.

Indexes fell more sharply across much of the rest of Europe, and German stocks in the DAX lost 1.4%. The loss was even worse in Hong Kong, where the Hang Seng index fell 2.2% following heavy pressure on tech-related stocks.

In the bond market, the yield on the 10-year Treasury fell to 4.20% from 4.25% late Wednesday.

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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.