Major US stock indexes rose significantly after the US presidential administration announced that it would postpone the introduction of 10 percent tariffs on some Chinese products until December 15, including laptops, mobile phones, clothes and game consoles.
The news of Washington’s move, which marks a retreat from a tough stance in trade negotiations with Beijing, helped outweigh concerns about geopolitical and economic challenges.
Apple's 4.3% jump in stocks (AAPL), which manufactures its iPhone and MacBook in China, along with chip makers ’shares pushed the tech sector up 1.7%. Semiconductor maker Philadelphia Semiconductor Index (SOX) is up nearly 3%.
Investors also studied the Labor Department report, which showed that US consumer prices rose in July. According to the report, the consumer price index rose 0.3%, as predicted, after rising 0.1% in May and June. In the 12 months to July, the consumer price index rose 1.8% after rising 1.6% in June. Excluding food and energy prices, basic consumer prices also rose 0.3% for the second month in a row, while economists forecast 0.2% growth. The so-called basic consumer price index was increased due to higher prices for clothes, airline tickets, medical equipment and household items. In the 12 months to July, the base consumer price index rose 2.2% after rising 2.1% in June.
Almost all DOW components completed trading in positive territory (29 out of 30). The biggest gainers were Apple Inc. (AAPL, + 4.30%). Only Pfizer Inc. shares down (PFE, -0.57%).
All S&P sectors recorded an increase. The largest growth was shown by the technology sector (+ 1.7%).
At the time of closing:
Dow 26,279.91 +382.20 +1.48%
S&P 500 2,926.15 +43.06 +1.49%
Nasdaq 100 8,016.36 +152.95 +1.95%
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