Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Markets

News : Markets
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 

U.S. Stocks Rise as Huawei Ban Is Delayed

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/21/2019 | 01:20pm EDT

By Nathan Allen and Akane Otani

U.S. stocks rose Tuesday, buoyed by gains in the technology sector, after the White House said it would grant temporary exemptions to an export blacklist against Huawei Technologies.

The Dow Jones Industrial Average gained 156 points, or 0.6%, to 25836. The S&P 500 added 0.9% and the Nasdaq Composite advanced 1.1%.

Shares of chip makers and hardware manufacturers bounced higher, helping major indexes chip away at some of their losses from the start of the week. Analysts attributed the gains to U.S. officials' plans to give some suppliers and customers of Huawei a reprieve from trade penalties -- something they said would help ease tensions between the U.S. and China as they attempt to resume trade talks.

The move "gives both sides more time to cool down and consider whether they're going to take the step into the abyss," said John Vail, chief global strategist at Nikko Asset Management.

Semiconductor firm Advanced Micro Devices rose 1.9%, while hard disk drive manufacturer Western Digital added 3.6% and chip maker Intel gained 2.3%.

Gains in shares of industrial companies also gave major indexes a lift. Many such companies have been viewed as proxies for investors' optimism about trade, since their businesses are closely tied to global growth.

Caterpillar rose 1.8% and Boeing added 0.9%.

As uncertainty over the U.S. and China's trade fight has risen over the past few weeks, analysts have raised fresh concerns about the long-term outlook for the global economy.

The Organization for Economic Cooperation and Development warned in a report Tuesday that uncertainty over trade has derailed global growth over the past year and threatens to dampen future economic expansion.

"This won't be a one-day event. Huawei is entrenched on so many parts of the tech sector, this could take days or weeks to untangle," said Jasper Lawler, head of research at London Capital Group. He added that Monday's stock pullback was a "reality check" for U.S. officials that illustrated how pervasive Huawei's goods are and how intertwined the group has become with its counterparts in the U.S.

Elsewhere, the Stoxx Europe 600 advanced 0.5% to snap a two-day losing streak.

The British pound sank to a four-month low against the U.S. dollar as investors grappled with fresh worries about Brexit ahead of the European elections. Talks between Ms. May and the opposition Labour Party failed last week, raising fears that the U.K. might be headed toward a so-called hard Brexit.

"With PM May's tenure heading into the final stretch it appears unlikely that a last-ditch attempt to get her withdrawal agreement through parliament next month will be successful," said David Cheetham, chief market analyst at XTB.

Stocks in Asia ended mixed, with the Shanghai Composite rising 1.2% and Hong Kong's Hang Seng losing 0.5% for its third straight session of declines.

Write to Akane Otani at akane.otani@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
CHINA-SHANGHAI COMP -0.41% 2978.71 End-of-day quote.19.25%
DJ INDUSTRIAL -0.08% 27001.98 Delayed Quote.15.75%
HANG SENG 0.46% 26628.45 Real-time Quote.3.03%
NASDAQ 100 -0.29% 7920.208817 Delayed Quote.23.92%
NASDAQ COMP. -0.30% 8124.183658 Delayed Quote.21.43%
S&P 500 -0.20% 2989.69 Delayed Quote.19.26%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Markets"
06:21pStocks flat on data, earnings; pound volatile
RE
04:55pWALL STREET STOCK EXCHANGE : U.S. Stocks Slip After Retail Sales Unexpectedly Fall
DJ
04:50pTSX rises 0.05% to 16,427.18
RE
04:49pStocks flat on data, earnings; pound volatile
RE
04:44pWorld stocks flat on data, earnings; pound volatile
RE
04:22pMARKET SNAPSHOT: Stocks End Slightly Lower After Weak U.S. Retail Sales And Tension With China Offsets Good Corporate Earnings
DJ
02:48pWALL STREET STOCK EXCHANGE : Weak U.S. retail sales cast shadow over slowing economy
RE
02:10pWALL STREET STOCK EXCHANGE : U.S. Stocks Waver After Retail Sales Unexpectedly Fall
DJ
01:05pEUROPE : European shares pause as Brexit deal reports swirl
RE
12:37pWALL STREET STOCK EXCHANGE : U.S. Stocks Waver After Retail Sales Unexpectedly Fall
DJ
Latest news "Markets"