Stocks rally as US delays tariffs on key Chinese imports
U.S. stocks, especially shares of tech companies, and bond yields rallied Tuesday after the White House said tariffs on key Chinese imports would be delayed.
Early in the day's session, equities turned positive on a report that China's commerce secretary agreed to conduct a phone call in two weeks with U.S. Trade Representative (USTR) Robert Lighthizer, according to Reuters.
Wall Street then learned that the White House was delaying until Dec. 15 additional tariffs on certain Chinese exports.
The tech sector led the day's gainers: Products in this group included companies that make cell phones, laptop computers, video game consoles, toys and computer monitors. Shares of footwear and clothing companies also gained.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 37985.87 | +232.56 | +0.62% |
| SP500 | S&P 500 | 5045.15 | +22.94 | +0.46% |
| I:COMP | NASDAQ COMPOSITE INDEX | 15755.001506 | +71.63 | +0.46% |
Shares of Caterpillar and Boeing also turned positive in a reversal from the premarket session.
The U.S. consumer price index increased 0.3 percent in July. The cost of energy products led a range of goods that contributed.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MU | MICRON TECHNOLOGY INC. | 113.67 | -2.65 | -2.28% |
| XLNX | n.a. | n.a. | n.a. | n.a. |
| BA | THE BOEING CO. | 171.21 | +1.02 | +0.60% |
| CAT | CATERPILLAR INC. | 362.14 | +3.81 | +1.06% |
| AAPL | APPLE INC. | 167.90 | -0.10 | -0.06% |
The yield on the 10-year Treasury rose to 1.69 percent, up from the previous session's yield which had settled near its three-year low.
The CPI had edged up 0.1 percent for two straight months.
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Market benchmarks in London and Frankfurt ended the day higher, 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.