© Reuters. Traders work on the New York Stock Exchange
By Shreyashi Sanyal
(Reuters) – US stock indices rose broadly on Tuesday as Washington's decision to temporarily ease China's Huawei Technologies eased concerns over yet another Escalation in the trade war between the two countries.
Chipmakers, who bore the brunt of Monday's sell-off, surged after the US granted the Chinese telecom equipment company a license to purchase US merchandise by 1
The Philadelphia Semiconductor Index gained 1.61%, recording on track to end a three-day slump. Companies serving Huawei, including Intel Corp (NASDAQ), Qualcomm (NASDAQ 🙂 Inc, Xilinx Inc (NASDAQ 🙂 and Broadcom (NASDAQ 🙂 Inc, rose between 1 % and 2%.
The broader technology sector gained 1.08%, with the largest increase among the eleven large S & P sectors.
"Huawei's easing is seen as a sign that the US and China are dissatisfied with each other, but at the moment neither side wants to burn the bargaining chip," said Connor Campbell analyst at Spreadex in London.
US. President Donald Trump blacklisted Huawei last week, causing several companies to end dealings with the world's largest telecom equipment supplier and fears the decision could have a profound impact on the global technology sector.
Reuters reported on Sunday that Google would stop providing Huawei's access to its proprietary apps and services from Alphabet (NASDAQ 🙂 Inc. However, Huawei said Tuesday it is working closely with the US company to resolve the restrictions.
Wall Street was hit by growing concerns over a prolonged trade war, and the S & P 500 had the worst monthly decline since its December sale. The benchmark index is 3.3% below its all-time high of May.
"This is a sheer case of caution and we are in a trading range and recent behavior is indecisive," said Peter Cardillo, chief economist at Spartan Capital Securities, New York.
At 9:49 pm CET rose 137.73 points or 0.54% to 25,817.63. The S & P 500 gained 19.20 points or 0.68% to 2,859.43 and up 67.04 points or 0.87% to 7,769.41.
Investors also focused on the earnings reports of a few retailers, which proved disappointing.
Home Depot Inc (NYSE 🙂 shares fell 0.5% on the Dow after the DIY chain saw the slowest quarterly revenue growth in the same business for at least three years.
Kohl's Corp. fell 12.4%, the strongest among S & P 500 companies, after the department store operator cut its full-year earnings guidance and reported quarterly revenues and profits in the same business Missed expectations.
Competitor JC Penney Co Inc declined 7.4% after reporting stronger-than-expected quarterly Q2-to-2 ratio on the Nasdaq quarter-on-quarter.
The S & P Index posted 21 new 52-week highs and four new lows, while the Nasdaq recorded 30 new highs and 29 new lows.