© Reuters. Traders work on the NYSE floor in New York
By Shreyashi Sanyal
(Reuters) – US stock index rose in a broad rally on Tuesday, when Washington decided to temporarily ease the edge of China's Huawei Technologies over a further escalation of trade war between the two countries.
Chipmakers, who hit brown on Monday's sale, increased after the United States gave the Chinese telecom equipment manufacturer a license to buy US goods until August 1
Philadelphia Semiconductor Index got 1.61% and was on track to finish a three-day downturn. Companies that have delivered to Huawei including Intel Corp (NASDAQ :), Qualcomm (NASDAQ 🙂 Inc, Xilinx Inc (NASDAQ 🙂 and Broadcom (NASDAQ 🙂 Inc increased between 1% and 2%.
The broader technology sector rose 1.08%, the largest of the 11 major S&P sectors traded higher.
"Relief at Huawei is seen as a sign that while the United States and China are unhappy with each other, no side wants to burn the negotiating bridge right now," says Connor Campbell analyst at Spreadex in London.
US. President Donald Trump added Huawei to a black blacklist last week, leading several companies to discontinue their operations with the world's largest telecoms equipment manufacturer and trigger fear that the decision could deeply affect the global technology sector.
On Sunday, Reuters reported that Alphabet (NASDAQ 🙂 Inc's Google would stop giving Huawei access to its own applications and services. But Huawei said Tuesday that it was working closely with the US company to resolve the restrictions.
Wall Street has been affected by increased concern over a prolonged trade war, with S & P 500 putting in its worst monthly decline since December selling-of. The benchmark index is 3.3% during its all-time high hit earlier in May.
"This is a purely prudent and we are firm in a trading area. The latest behavior is indecision," says Peter Cardillo, marketing economist at Spartan Capital Securities in New York. : 49:00 ET was up 137.73 points, or 0.54%, at 25.817.63. The S&P 500 was up 19.20 points, or 0.68% at 2.859.43 and it was 67.04 points, or 0.87% at 7.769.41.
Investors also focused on performance reports from a handful of dealers who turned out to be disappointing.
Home Depot Inc (NYSE 🙂 shares dropped 0.5%, mostly at Dow, after the home improvement chain reported its slowest growth in quarterly same store sales for at least three years.
Kohl & # 39; s Corp drew 12.4%, most of the S & P 500 companies, after the department store operator lowered its overall forecast and reported quarterly the same store sales and profits that missed expectations.
Rival JC Penney Co Inc fell 7.4% after the company reported a larger than expected decline in quarterly comparable retail sales.
The advance problems exceeded decliners with a ratio of 3.78 to 1 on the NYSE and of a 2.78 to 1 ratio on Nasdaq.
The S&P index recorded 21 new 52-week high and four new downs, while Nasdaq recorded 30 new highs and 29 new lows.