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US stocks jump as Trump delays some key China tariffs

A street sign for Wall Street is seen outside the New York Stock Exchange (NYSE) in Manhattan, New York City, US. Photograph:( Reuters )

AFP Washington, US Aug 13, 2019, 07.41 PM (IST)

Wall Street stocks bounced early Tuesday after the US government announced it was delaying tariffs on key consumer electronic goods imported from China.

Major indices rallied more than one per cent after Washington pushed back the imposition of the 10 per cent tariffs until December 15 for products that included cell phones, laptops and video game systems.

About 25 minutes into trading, the Dow Jones Industrial Average was up 1.6 per cent at 26,305.14. 

The broad-based S&P 500 also climbed 1.6 per cent to 2,928.68, while the tech-rich Nasdaq Composite Index jumped 2.1 per cent to 8,030.81.

Stocks have been pressured since US President Donald Trump earlier this month announced plans to impose tariffs on $300 billion in Chinese imports on September 1.

Beijing retaliated by halting purchases of US agricultural goods, spawning talk the economic powers may not resolve the longstanding conflict until after the 2020 US presidential election. 

US stocks lost more than one per cent on Monday amid worries over slowing global growth, the US-China trade war and turbulence in a number of international hot spots, including Hong Kong.

On Tuesday, protests at the Hong Kong airport forced the cancellation or suspension of hundreds of flights at the busy hub for a second day, while state-run media broadcast videos of security forces gathering across the border.

US economic data showed a jump in inflation in July, while a German investor confidence index sunk to its lowest level in almost eight years in August, bolstering expectations the European Central Bank will soon enact measures to provide more stimulus.

Story highlights

Major indices rallied more than one per cent after Washington pushed back the imposition of the 10 per cent tariffs until December 15 for products that included cell phones, laptops and video game systems.