Wall Street shares end higher on Huawei reprieve
Tech-rich Nasdaq Composite Index closed higher on Tuesday, up 1.08% or 83.35 points, at 7,785.72.
Wall Street rallied on Tuesday after days of losses, in a positive response to the statement from the United States (US) after it said it would temporarily relax on the restrictions placed on China’s Huawei.
After blocking Huawei from buying US goods last week, the US delayed the ban on the Chinese telecom giant, giving it leeway to purchase US-made goods to maintain its existing networks and provide software updates to existing Huawei handsets until August 19.
Tech-rich Nasdaq Composite Index closed higher on Tuesday, up 1.08% or 83.35 points, at 7,785.72. The Dow Jones Industrial Average climbed 0.77% or 197.43 points, at 25,877.33.
Broad-based S&P 500 rose 0.85% or 24.13 points, at 2,864.36.
Google and Huawei amid the US-China trade conflict
Global markets were thrown in a loop on Monday when Google said it would sever ties with Huawei to comply with the US ban. Late on Monday, the US commerce department said it would postpone the implementation of its ban for 90 days to prevent a sudden disruption to businesses and to allow for companies to adjust to the changes.
‘The temporary general license authorizes certain activities necessary to the continued operations of existing networks and to support existing mobile services, including cybersecurity research critical to maintaining the integrity and reliability of existing and fully operational networks and equipment,’ commented US secretary of commerce Wilbur Ross.
Observers suggest that the US has singled out Huawei as the “bargaining chip” to get leverage on the US-China trade talks, and some are concerned that China will soon retaliate by picking on US tech firms.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Seize your opportunity
Deal on the world’s stock indices today.
- Trade on rising or falling markets
- Get one-point spreads on the FTSE 100
- Unrivalled 24-hour pricing
See opportunity on an index?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on an index?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from one point on the FTSE 100
- Trade more 24-hour indices than any other provider
- Analyse and deal seamlessly on smart, fast charts
See opportunity on an index?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
