Stocks rose broadly on Wall Street in afternoon trading Wednesday as investors welcomed China’s move to exempt some U.S. products from a recent round of tariffs.
Technology, health care and communication services stocks powered much of the gains for the benchmark S&P 500 index, which has been essentially flat for much of the week. Investors also continued to favor smaller-company stocks.
Traders snapped up technology stocks, which had fallen earlier in the week. The sector is particularly sensitive to the fallout from the trade war between Washington and Beijing because many big tech companies, such as Apple, manufacture products in China.
Shares in the iPhone maker, which unveiled a variety of new products and services on Tuesday, were up 1.4%. Chipmakers Nvidia and Intel each gained 1.3%.
Health care and communications stocks also made strong gains. Medtronic climbed 1.6% and AT&T added 2.2%.
The financial sector wobbled between small gains and losses after pulling out of an early slide. Wells Fargo gained 1.2%.
Energy stocks fell the most as the price of U.S. crude oil slumped 2.7%. Chevron slid 1.1%.
Bond prices fell. The yield on the 10-year Treasury rose to 1.73% from 1.70% late Tuesday.
China on Wednesday said it will exempt American industrial grease and some other imports from tariff increases, though it kept in place penalties on soybeans and other major U.S. exports ahead of negotiations next month.
The move could indicate that both sides are settling in for an extended conflict even as they prepare for talks in Washington aimed at ending the dispute that threatens global economic growth.
Financial markets have been roiled this summer as the trade war escalated. Investors worry the impact of