Financial markets have fully priced in a rate cut at the US central bank's September meeting following a recent escalation in the bruising trade war between the United States and China.
That eased the concerns of a trade war-driven slowdown in global growth that have dominated two weeks of volatile trading on Wall Street, since President Donald Trump announced a new round of tariffs on August 1.
However, according to the Wall Street Journal, "for every dollar brought in by the new tariffs, a dollar has been authorized to fund rescue programs for farmers who have been harmed by retaliation from China and other countries". Apple jumped 4.1%, Mattel jumped 3.6% and Steve Madden rose 4.2%.More news: Two New Drugs Significantly Lower Death Rate — Ebola Cure Found
"The escalation of the U.S. China trade war has been an overhang. and the fact that we have got a bit of a reprieve on that is putting a bit of optimism into markets", said Art Hogan, chief market strategist at National Securities in NY. Around an hour after the opening bell on Wall Street, the Dow Jones Industrial Average was up 1.76 percent, adding 456.25 points.
The Office of the U.S. Trade Representative said tariffs would also be delayed until December 15 on "computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing".More news: The Lion King Remake Is Now The Top Grossing Animated Film
Meanwhile, shares in HP Inc. were up 2.65 percent to $19.44, while Microsoft's stock price was up 1.38 percent to $137.66 and Intel's stock price rose 2.46 percent to $46.72. The S&P 500 index was up 1.5%.
Advancing issues outnumbered decliners by a 3.02-to-1 ratio on the NYSE and by a 2.75-to-1 ratio on the Nasdaq.
USA indexes are still down about 3% for the month as investors are unsettled by trade tensions between the US and China, protests in Hong Kong and political instability in Argentina.More news: Perisic poised to join Bayern, reveals Kovac