Wall Street recovered on Tuesday after the U.S. eased restrictions on Chinese tech giant Huawei, abating investor concern about further trade war retaliation.
The S&P 500 rose 17 points or 0.6% by 9:44 AM ET (13:44 GMT), while the Dowgained 128 points or 0.5% and tech-heavy Nasdaq composite was up 66 points or 0.9%.
The U.S. Commerce Department announced on Monday that it would allow Huawei to purchase some U.S.-made goods until August 19 to maintain existing networks. The U.S. technology sector tanked on Monday around fears of a global impact after companies announced they had stopped doing business with the Chinese conglomerate.
Huawei founder Ren Zhengfei said the changes wouldn’t make a difference, as the company had already prepared for U.S. sanctions.
Technology stocks rallied, with Netflix (NASDAQ:NFLX) up 1.2%, Broadcom (NASDAQ:AVGO) gained 2.1% and Micron (NASDAQ:MU) rising 2.4%.
Beyond Meat (NASDAQ:BYND) was up 0.6%, while Pinterest (NYSE:PINS) inched up 1.5%.
Elsewhere, the retail sector was under pressure after steep declines in comparable-store sales from Kohls and JC Penney.
Kohls (NYSE:KSS) slumped 11.8% while JC Penney (NYSE:JCP) declined 7.8% andHome Depot (NYSE:HD) fell 1.8% after it also reported a fall in same-store sales.
Tesla (NASDAQ:TSLA) slipped 2.3% after a Morgan Stanley (NYSE:MS) report said the company was worth only $10 in a worse-case scenario.
In commodities, gold futures fell 0.6% to $1,269.65 a troy ounce, while crude oilinched down 0.3% to $63.06. The U.S. dollar index, which measures the greenback against a basket of six major currencies, was up 0.2% to 97.928.