Wall Street snapped a two-day losing streak early Tuesday after the US said it will delay imposing tariffs on certain items that were supposed to take effect on Sept. 1.
Cell phones, laptops, and some apparel items will not be affected by the 10 percent tariffs President Trump planned to impose next month, the United States Trade Representative announced Tuesday, citing “health, safety, national security and other factors” as reasons for the delay. Those items will be subjected to tariffs starting Dec. 15.
The delay was enough to propel stocks — which had been hampered over the last few weeks on trade worries — upward.
The Dow Jones Industrial Average climbed more than 500 points — or, 1.9 percent — after the USTR’s announcement before retreating slightly. Apple was the biggest gainer on the blue-chip index, soaring 4.8 percent.
Other gainers in Tuesday’s session were Dow and Caterpillar, both up more than 4 percent. Retailers and toy-makers, which rely on goods and services from China, also got a boost with Mattel jumping 9 percent, while Kohl’s and Walmart popped 5.8 percent and 2.5 percent, respectively.
Both the S&P 500 and Nasdaq were up, gaining 1.9 percent and 2.2 percent, respectively.
Trade tensions ramped up between the two countries earlier this month after Trump threatened to impose tariffs of 10 percent on $300 billion of Chinese goods.
But analysts eyed Tuesday’s sudden rally cautiously.
“I’m not sure this takes us out of the woods,” Donald Selkin, chief market strategist at Newbridge Securities, told The Post.
“It’s a very strong rally in the context of a market that has been trending lower,” he said.
On Monday, analysts from Goldman Sachs said in a note that hopes of the US and China coming to an agreement on trade before the next year’s Presidential election “collapsed.”
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