Stocks jump higher as White House delays tariffs on key Chinese imports
U.S. stocks jumped higher on Tuesday as fears of a drawn out global trade war eased, after the White House said tariffs on key Chinese imports would be delayed.
Stocks originally turned positive on a report that China’s commerce secretary agrees to conduct a phone call in two weeks with U.S. trade representatives, according to Reuters.
Stocks then took off as as part of USTR’s public comment and hearing process, it was determined that the tariff should be delayed to December 15 for certain articles.
Products in this group include, for example, cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing.
Stocks fell in the last session to start the week as a wave of selling that analysts attributed to mounting doubts about a trade deal pulled lower shares of everything from banks to technology companies.
The Dow was down as many as 462 points before it pared losses to close off 389.73 points.
|I:DJI||DOW JONES AVERAGES||26308.43||+410.72||+1.59%|
|I:COMP||NASDAQ COMPOSITE INDEX||8020.070657||+156.66||+1.99%|
President Trump’s latest tariff threat on Chinese goods had recently spooked markets globally.
Chipmakers, which depend on China for a large portion of their revenue, traded higher on Tuesday’s news.
Shares of Caterpillar and Boeing also turned positive in a reversal from the premarket session.
|MU||MICRON TECHNOLOGY INC.||44.18||+2.05||+4.87%|
The U.S. consumer price index increased 0.3 percent in July. The cost of energy products led a range of goods that contributed.
The CPI had edged up 0.1 percent for two straight months.
Market benchmarks in London and Frankfurt fell, while Shanghai and Tokyo closed down. Hong Kong’s main index lost 2.1 percent as pro-democracy protesters crowded into the territory’s airport for a second day.