Stocks surged Tuesday morning on news that the Trump administration would delay tariffs on some Chinese imports until Dec. 15.
The Dow gained more than 400 points, or 1.7%, rising to 26,339 at 10:40 a.m. Eastern Time. The S&P 500 stock index gained 1.8% and the tech-heavy Nasdaq composite rose 2.4%.
The U.S. Trade Representative said the new tariffs of 10%, due to kick in on Sept. 1 would be delayed until mid-December on cell phones and other electronics products as well as some kinds of toys, shoes and clothing.
Apple, Nike and some toymakers surged as a result. Apple gained 5.1%, while Mattel rose 9.8% and Hasbro rose 6.4%. Amazon gained 2.1%.
The news marked a welcome cool-off of trade tensions between the two economic giants that have been roiling global markets for weeks and sending. President Donald Trump’s announcement of the wide-ranging new tariffs on Aug.1 rattled Wall Street investors, as did a subsequent decision by Beijing to n against the dollar.