- All three major US stock indexes rose on Monday after the Trump Administration said it would exempt some Chinese imports from tariffs scheduled to take effect in September.
- The US Trade Representative also said duties on other products, including cell phones, laptops, and some clothing items, would be postponed until December 15.
- Shares of Apple jumped as much as 6% on the news. The company's iPhone was poised to get hit by the 10% tariff.
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Stocks soared on Monday after the Trump administration announced it would exclude some products from the upcoming tariffs in September, giving investors some hope that a trade deal could be reached between the US and China.
"Certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent," the Office of the US Trade Representative said in a statement on its website.
The agency also said it would postpone tariffs on other product categories including cellphones, laptops, video game consoles, and some footwear and clothing items until December 15. The decision was a result of feedback collected form hundreds of companies during the public comment and hearing process.
Here's a look at the major indexes as of the 12:00 p.m. EST on Tuesday:
- The S&P 500 rose 1.66%, to 2,930.84.
- The Dow Jones Industrial Average climbed 1.65%, to 26,321.35. The index rose as much as 529 points at its intraday high.
- The Nasdaq Composite jumped 1.99% to 8,020.22.
The positive development helped stocks rebound from a sharp sell-off on Monday sparked by concerns over a slowdown in global growth. The anxiety stemmed from protests in Hong Kong that shutdown the city's airport and a major crash in Argentina's stock market and currency following primary presidential elections.
Within the S&P 500, these were the 5 biggest winners:
- Best Buy: 8.2%
- Dollar Tree: 5.6%
- Kohls: 5.6%
- Hasbro: 5.3%
- PVH: 5.1%
Shares of Apple rose as much as 5% after the Trump administration's tariff announcement. The company was bracing to get hit with additional costs from the tariffs due to its heavy reliance on China to manufacture iPhones and other hardware.
Technology stocks led the rally in the S&P 500 climbing more than 2%. Materials rose 1.7%, while industrials gained 1.6%. Real estate and utilities were still down during intraday trading.
