Wall Street’s three main equities benchmarks all gained around 1% on Thursday, with the S&P 500 and Dow Jones Industrial Average both hitting fresh record highs.

The rally comes despite the resignation setting in around the globe that the ensuing trade war between the US and China will be the new normal. The market reaction to data indicating strength in the US economy will likely reinforce the narrative coming from the White House that the country is on strong footing to engage in a trade fight with Beijing

US consumer confidence reached its highest point in 18 years in August, and data released Thursday by the Organization for Economic Cooperation and Development forecast US GDP to grow by nearly 3%, its fastest pace since 2005.