- USTR says additional tariffs on some Chinese products will be delayed to December 15.
- Trade-sensitive technology shares post strong gains in early trade.
- Defensive stocks turn south amid strong risk appetite.
After starting the day deep in the negative territory, Wall Street's main indexes rose sharply on the back of renewed trade optimism. As of writing, the Dow Jones Industrial Average and the S&P 500 were both up 1.6% on the day while the Nasdaq Composite was adding 2.5%.
According to an official statement published by the Office of the US Trade Representative Lighthizer, the Trump administration decided to delay the additional 10% tariffs on certain Chinese products including a variety of consumer electronics and allowed improved the market sentiment.
The trade-sensitive Technology Index rose sharply on these headlines and was last up 2.3% on the day to lead the rally ahead of Communication Services and Industrial indexes, which were both adding around 1.7%. On the other hand, the defensive Real Estate and Utilities indexes post modest losses to reflect the risk-on atmosphere. In the meantime, the CBOE Volatility Index, Wall Street's fear gauge, is down nearly 11% on the day.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.