Stocks rose sharply on Wall Street on Tuesday after the US government said it would delay new tariffs on certain goods imported from China and remove tariffs on other goods entirely.
The news marked a welcome cool-off of trade tensions between the two economic giants which has been roiling global markets for weeks. President Donald Trump’s announcement of the wide-ranging new tariffs on August 1 rattled investors, as did a subsequent decision by Beijing to allow its currency to weaken against the dollar.
A trader works on the floor of the New York Stock Exchange. Picture: AP
The US Trade Representative said the new tariffs of 10 per cent, due to kick in on September 1st, would be delayed until mid-December on mobile phones and other electronics products as well as some kinds of toys, shoes and clothing. Apple, Mattel and Nike surged as a result.
The latest developments in the ongoing trade feud snapped stocks out of a two- day dip. Markets have been particularly volatile in August as China and the US again escalated the long-running trade war and cast a cloud over prospects for global economic growth.
Apple surged 5.1 per cent in the early going and did much of the work to lift what has been a volatile technology sector. The sector is highly sensitive to trade tensions because those companies do so much business with China. Chipmakers including Intel and Nvidia also made solid gains.
The United States is delaying tariffs on Chinese-made mobile phones, laptop computers and other items. Picture: AP
Amazon rose 2 per cent and Nike gained 1.7 per cent to help lift consumer-oriented stocks. The latest trade war developments also sent toymakers higher. Mattel rose 9.8 per cent and Hasbro rose 6.4 per cent
Bond yields also headed higher.