Investing.com – A Trump Administration decision to delay the imposition of tariffs on goods imported from China set off a huge rally Tuesday that offset just about all of Monday’s losses.
The Administration delayed the imposition of tariffs on some goods until Dec. 15, which should give retailers plenty of time to stock their shelves.
“We’re doing this for the Christmas season,” President Donald Trump told reporters
The rally sent the up 1.44%, the up 1.4% and the up nearly 2%.
The index, which has a concentration in big tech, jumped more than 2.2%.
Apple (NASDAQ:), Nike (NYSE:), Microsoft (NASDAQ:) and Caterpillar (NYSE:) were among the biggest winners from the decision.
The delays were concentrated on a wide variety of goods that are big sellers in the holiday shopping season, including cell phones, tennis racquets, video game consoles, computer keyboards, footware and clothing.
The White House had vowed to impose the tariffs on Sept. 1, but the announcement in late July unnerved markets, unleashing wild swings in U.S. stock prices. Tariffs will be imposed Sept. 1, on a number of products, including food products.
The Dow was up nearly 530 points before some traders sold to lock in profits. In addition, worries that China was about to send troops into Hong Kong appeared to have a modest effect on the markets.
prices were higher as the rally took off. , however, fell back.
But there remained worries about global growth as the trade fight between Washington and Beijing grinds on. Investors could see it in the narrowing spread between 2-year Treasury securities and the 10-year note. Many analysts believe a 10-year that’s less than a 2-year yield (inversion) is a strong signal that a recession is coming.
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