The S&P 500 and Dow Jones industrials are turning it around after a two-day losing streak. This comes on the heels of news that the United States has removed some items from the list of China tariffs and delayed tariffs on others. While this is an incredible day from the broad markets, with each of these major U.S. indexes up over 1.5% on the day thus far, the tech sector is reaping the biggest benefit from this announcement, and retail is seeing a handy gain as well.
As for the China tariffs news, the U.S. Trade Representative said specifically that the United States will delay some tariffs against China until December 15. The United States also will remove “certain products” from the tariff lists on the basis of health, safety and national security. Included in the items are cell phones, laptop computers, video game consoles and footwear.
According to CNBC:
President Donald Trump abruptly ended the cease-fire with China on Aug. 1 by threatening to impose additional tariffs on Chinese imports that eluded duties in the earlier round in May. Stocks suffered their worst days of the year on Aug. 5 after China allowed its currency to drop against the dollar below a key level unseen since 2008.
In terms of the U.S. markets, the Dow Jones industrials were roughly 4% off all-time highs hit earlier this summer. The S&P 500 is about 3.3% off its highs.
The Nasdaq is having the best day out of the group, up 2% on the day. The tech-heavy index is up closer to 20% year to date.
The clear winners leading the Dow in order are Apple Inc. (NASDAQ: AAPL), Caterpillar Inc. (NYSE: CAT) and 3M Co. (NYSE: MMM), up 4.2%, 3.2% and 2.8%, respectively. Note that each of these companies has something to gain from the relaxing of these China tariffs.
Retailers also were pleased with this announcement. Best Buy Co. Inc. (NYSE: BBY), Target Corp. (NYSE: TGT) and Walmart Inc. (NYSE: WMT) each saw solid gains as well, up 5.2%, 2.8% and 2.0%, respectively. The SPDR S&P Retail ETF (NYSEARCA: XRT) is up roughly 1.6% on the day as well.
24/7 Wall St.In 20 Years, I Haven’t Seen A Cash Back Card This Good
After two decades of reviewing financial products I haven’t seen anything like this. Credit card companies are at war, handing out free rewards and benefits to win the best customers.
A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges.
Our top pick today pays up to 5% cash back, a $200 bonus on top, and $0 annual fee. Click here to apply before they stop offering rewards this generous.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.