Wall Street advanced on Tuesday, lifted by shares of technology companies, after the US temporarily eased curbs on China’s Huawei Technologies Co Ltd, reflecting a slight reduction in tensions on one front of the Sino-American trade fight.
The Dow Jones Industrial Average added 197 points, or 0.77%, to 25,877, the S&P 500 gained 24 points, or 0.85%, to 2,864 and the Nasdaq Composite added 83 points, or 1.08%, to 7,786.
Huawei was blacklisted by US President Donald Trump last week, leading several companies to suspend business with the world’s largest telecom equipment maker, a move that could hit their sales. Chipmakers, many of which sell to Huawei, suffered the most in Monday’s sell-off.
But late on Monday, Washington granted the Chinese telecoms equipment maker a license to buy US goods until 19 August. The development offered a reprieve to shares of chipmakers, with the Philadelphia Semiconductor Index gaining 2.1% to end a three-day slump.
Shares of Huawei suppliers such as Intel Corp, Qualcomm Inc, Xilinx Inc and Broadcom Inc rose between 1% and 4.6%.
Meanwhile, nearly 200 American footwear companies, including Nike Inc. and Under Armour Inc., wrote a letter to Trump, asking him to remove proposed tariffs on imported shoes from China. The companies said it would be “catastrophic” for consumers, corporations and the US economy.
Among the S&P 500’s major sectors, only defensive consumer staples shares traded lower, down 0.3%.
Shares of Kohl’s Corp dropped 12.3%, the largest decline among S&P 500 companies, after the retailer cut its full-year profit forecast.
J.C. Penney fell 7.0% after the company also reported a bigger-than-expected fall in quarterly same-store sales.
Shares of Merck & Co. Inc. were in focus after the pharmaceutical giant said that it had reached a deal to acquire Peloton Therapeutics Inc. Shares of Merck added 0.8%.
In Asia, shares traded cautiously on Wednesday in morning session as trade tensions continued to linger between the US and China.
Shares in mainland China slipped in early trade, with the Shanghai composite declining 0.5%. In Hong Kong, the Hang Seng Index added 0.54%.
The Nikkei 225 in Japan added 0.16%. In South Korea, the Kospi slipped 0.28%. Over in Australia, the ASX 200 declined 0.25%.