Technology companies helped power stocks broadly higher on Wall Street Tuesday, snapping the market’s two-day losing streak. The rally followed the U. S. government’s…
Technology companies helped power stocks broadly higher on Wall Street Tuesday, snapping the market’s two-day losing streak.
The rally followed the U. S. government’s decision to temporarily ease off proposed restrictions on technology sales to Chinese companies. The news gave a boost to technology sector stocks, which took steep losses a day earlier when the Trump administration announced curbs on technology sales, aimed primarily at Chinese telecom gear maker Huawei.
About one-third of that company’s suppliers are American chipmakers and the move would crimp sales for companies including Qualcomm and Broadcom. Both companies posted gains Tuesday, along with other chipmakers.
The U. S. government’s decision to issue a 90-day grace period on technology sales to Huawei, ZTE and other Chinese companies also relieved worries on Wall Street about yet another escalation in the trade war between the U. S. and China.
“I’m a bit surprised that the bounce back has been as strong as it has been,” said Randy Frederick, vice president of trading & derivatives at Charles Schwab. “It speaks to the fact that we’re still in a bull market and, in general, the economics are still pretty solid, and the markets are happy to move up on any sort of positive news, especially if it looks constructive toward trade.”
The S&P 500 index rose 24.13 points, or 0.9%, to 2,864.36. The Dow gained 197.43 points, or 0.8%, to 25,877.33.
The technology-heavy Nasdaq composite climbed 83.35 points, or 1.1%, to 7,785.72, erasing a good chunk of Monday’s losses. The Russell 2000 index of small companies picked up 20.28 points, or 1.
