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U.S. stocks rallied in midday trading on Wall Street Tuesday after the U.S. government temporarily eased off its proposed restrictions on technology sales to Chinese companies.
Technology stocks rallied after taking steep losses Monday when the government announced curbs on technology sales, aimed primarily at Chinese telecom gear maker Huawei. About one-third of that company’s suppliers are American chipmakers and the move would crimp sales for companies including Qualcomm and Broadcom. Both companies posted gains Tuesday, along with other chipmakers.
The article goes on to state the following:
The U.S. government’s decision to issue a 90-day grace period on technology sales to Huawei, ZTE and other Chinese companies also relieves some worry on Wall Street about yet another escalation in the trade war between the U.S. and China. The heightened tensions over trade have put the market in a rut for the last two weeks — the S&P 500 is down 2.8% for May, although the index still shows a gain of 14.2% for the year.
Banks and industrial stocks also helped push the market broadly higher Tuesday. Citigroup rose 1%. Deere rose 2.4%.
Apple rose 2.1% after falling a day earlier. Boeing rose 1.3% and was the biggest driver of gains in the Dow Jones Industrial Average.
Utilities and consumer staples lagged the market as investors shifted away from those safe-play holdings and took on riskier stocks. Gains in consumer-oriented stocks were being held back by disappointing financial results from department stores J.C. Penney and Kohl’s.
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