U.S. stocks staged a turnaround Wednesday afternoon, amid developments in U.S. international trade relations that were being viewed as optimistic by investors who have become increasingly sensitive to tariff headlines.
The market ‘s gains were broad, with shares of internet-related and information technology companies climbing the most.
What are major indexes doing?
The Dow Jones Industrial Average DJIA, +0.57% rose 177 points, or 0.7%, to 25,710 after hitting a low of 25,341. The S&P 500 index SPX, +0.65% gained 23 points, or 0.8%, to 2,858 and the Nasdaq Composite Index COMP, +1.15% advanced 103 points, or 1.3%, to 7,838.
What’s driving the market?
The Trump administration plans to delay a decision on instituting new tariffs on car and auto part imports for up to six months, according to media reports. The news helped stocks to recover from early-morning losses and gain a foothold in positive territory.
The Commerce Department had submitted a report to the White House in February that gave the president the authority to impose new duties on car imports on national security grounds, with a deadline of May 18, but the president has the authority to delay the decision for another 180 days.
President Donald Trump has long complained about the relative popularity of Japanese and European cars among American consumers, and has threatened tariffs as a means of getting the EU and Japan to agree to concessions in future trade negotiations.
The news potentially offsets worries that a worsening U.S.-China trade conflict would be aggravated by spats with other major trade partners like the EU at the same time that Congress is considering whether or not to ratify the Trump administration’s U.S.-Mexico-Canada trade pact, which, if passed, would replace Nafta as the treaty governing North American trade.
CNBC reported Wednesday that House Speaker Nancy Pelosi will