Dow Up By Almost 400 Points Following US Delay On Tech Tariffs
The decision by the United States to delay its previously planned tariffs on Chinese imports has had a positive impact on global markets. US equities, in particular, saw its prices surge on Tuesday, recouping some of the losses that the market had experienced in the days prior.
The US Trade Representative announced earlier in the week that it would be moving the previously set date for the additional tariffs from September 1 to December 15.
The goods that would have been affected by the additional tariffs include Chinese imports such as laptops, cellular phones, video game consoles, PC peripherals, toys, and specific items of clothing and footwear.
The decision by the US agency came right after a reported conversation between US Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He had concluded. The officials reportedly discussed several trade issues and agreed to meet face-to-face in two weeks. The temporary ceasefire was understandably welcomed by investors and the markets rallied in response.
Following the news of the delayed tariffs, the Dow Industrial Average managed to gain around 373 points or about 1.4 percent. The spike managed to erase Monday's losses of nearly 400 points and cutting the stock's two-day losing streak.
Meanwhile, other major indexes such as the S&P 500 and the NASDAQ also managed to end the day in the green. The S&P 500 ended with a 1.5 percent gain, while the NASDAQ gained 2 percent.
The gains managed to lift the spirit of some investors, who were only seeing negative outcomes over the past few days. Analysts mentioned that the change in the market has given investors a glimmer of hope, but most are still wary of the fact that a resolution to the trade dispute between China and the United States is likely still very far off.
The moving of the deadline for the tariffs understandably had a positive impact on the specific companies involved. Tech stocks, in particular, were Tuesday's biggest winners with Apple leading the charge with a 4 percent gain. Semiconductor companies Nvidia and Intel ended the day with a 3 percent gain.
Meanwhile, footwear company Nike saw its prices surge by 2 percent. Toymakers Hasbro and Mattel saw their stocks rise by 3 percent and 5 percent, respectively.
Chinese equities listed in the US also reacted positively to the news. JD.com managed to end the day with a massive 13 percent increase, partly bolstered by its better-than-expected earnings report. Alibaba also ended the day in the green with a 3 percent increase.