US stocks surged more than 1.5% on Tuesday after the Trump administration said it would delay 10% tariffs on some Chinese products, including laptops and cell phones, driving a 4% rally in shares of iPhone maker Apple Inc. The administration also excluded video game consoles and certain items of footwear and clothing from the 10% tariff, scheduled to start next month, an abrupt pullback from its hardline stance on trade.
A 4.1% jump in shares of Apple, which makes iPhones and MacBooks in China, along with a rise in chip stocks pushed the technology sector 2.38% higher. The Philadelphia chip index rose 3.04%. Industrial bellwethers 3M Co and Caterpillar Inc, traditionally among the most sensitive to trade concerns and China, jumped about 3% each, while the S&P 500 retailing index gained 2%.
At 12:14 pm ET, the Dow Jones Industrial Average was up 417.74 points, or 1.61%, at 26,315.45, and the S&P 500 was up 48.44 points, or 1.68%, at 2,931.53. The Nasdaq Composite was up 157.63 points, or 2.00%, at 8,021.04.