U.S. stocks finished broadly higher Wednesday after President Donald Trump indicated that a deal to resolve the long-running, costly trade dispute with China could happen soon.

Trump's remarks, in addition to a sharp increase in sales of new U.S. homes, helped reverse an early slide for stocks.

Technology companies led the rally, which snapped a three-day losing streak for the market. Communication services stocks and companies that rely on consumer spending also notched solid gains. Health care stocks were the biggest loser.

The midmorning release of a rough transcript of a July phone call be...