Stocks soar after US delays plans for some China tariffs
Tuesday, 13 August 2019 () NEW YORK (AP) — Stocks rose sharply on Wall Street Tuesday after the U.S. 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.
The U.S. Trade Representative said the new tariffs of 10%, due to kick in on September 1st, would be delayed until mid-December on cell 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 U.S. again escalated the long-running trade war and cast a cloud over prospects for global economic growth.
Apple surged 5.1% 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.
Amazon rose 2% and Nike gained 1.7% to help lift consumer-oriented stocks. The latest trade war developments also sent toymakers higher. Mattel rose 9.8% and Hasbro rose 6.4%.
Bond yields also headed higher. The yield on the 10-year Treasury note rose to 1.69% from 1.64% late Monday. That helped boost banks, which rely on higher bond yields to charge more interest on loans.
KEEPING SCORE: The S&P 500 index rose 1.8% as of 10:21 a.m. Eastern time. The...
China's threat to impose counter-measures in retaliation for the latest U.S. tariffs knocked stocks sprawling on Thursday, checking earlier attempt to recover from a rout sparked by fears of a world recession. David Pollard reports.