Wall Street rebounded on Tuesday in a broad-based rally that had all three major domestic equity indexes in positive territory, as the Street virtually ignored the rising trade rhetoric between the United States and China.
Late Monday, Trump announced that 10 percent tariffs on $200 billion in imports from China would go into effect next week, escalating the tit-for-tat trade spat between the world’s two largest economies.
China responded on Tuesday by unveiling 10 percent tariffs on about $60 billion of U.S. goods effective Sept. 24.
The S&P 500 tech index moved upward on news that Apple and fitness gadget-maker Fitbit would escape the tariffs. Apple ended the trading day up 0.2 percent while Fitbit rose 6.4 percent.
The industrials index gained ground, with Boeing closing with a 2.1 percent gain in its share price as it led the advance of the Dow Jones Industrial Average. Boeing is the largest U.S. exporter to China.
Nike also helped the Dow as the Telsey Advisory Group raised share price target for the stock. As a result, Nike reached an all-time closing high, up 2.4 percent.
Consumer discretionary index was the best performing of the 11 major S&P 500 sector indexes, rising 1.3 percent.
he energy sector advanced 0.7 percent as crude prices rose on signs that OPEC is not prepared to boost output to address shrinking supplies from Iran.
Among the day’s losers, Tesla fell 3.4 percent after disclosing that it had received a request for documents from the Department of Justice regarding Chief Executive Elon Musk’s public statements about taking the company private.
Insurer Marsh & McLennan fell 4.0 percent on news that it will buy British insurance and reinsurance broker Jardine Lloyd Thompson for $5.7 billion.
Defensive groups lagged, with consumer staples down 0.4 percent. General Mills fell 7.6 percent after missing Street sales projections, extending the packaged food company stock’s near-26 percent year-to-date decline.
Approximately 6.39 billion shares changed hands on the major domestic equity exchanges, as compared to the 6.20 billion share average over the past 20 trading days.