Stock market surges after Trump administration pushes back China tariffs
Stocks surged Tuesday morning on news that the Trump administration would delay tariffs on some Chinese imports until Dec. 15.
The Dow gained more than 400 points, or 1.7%, rising to 26,339 at 10:40 a.m. Eastern Time. The S&P 500 stock index gained 1.8% and the tech-heavy Nasdaq composite rose 2.4%.
The U.S. Trade Representative said the new tariffs of 10%, due to kick in on Sept. 1 would be delayed until mid-December on cell phones and other electronics products as well as some kinds of toys, shoes and clothing.
Apple, Nike and some toymakers surged as a result. Apple gained 5.1%, while Mattel rose 9.8% and Hasbro rose 6.4%. Amazon gained 2.1%.
The news marked a welcome cool-off of trade tensions between the two economic giants that have been roiling global markets for weeks and sending Americans' 401(k) retirement savings tumbling. President Donald Trump's announcement of the wide-ranging new tariffs on Aug.1 rattled Wall Street investors, as did a subsequent decision by Beijing to n against the dollar.