US Stocks Bounce After Huawei Ban Delayed
Daniyal Sohail 28 days ago Wed 22nd May 2019 | 12:33 PM
Wall Street stocks bounced early Tuesday after two down sessions as the United States granted a 90-day reprieve to companies affected by a ban on Chinese telecom company Huawei
New York, (UrduPoint / Pakistan Point News - 21st May, 2019 ):Wall Street stocks bounced early Tuesday after two down sessions as the United States granted a 90-day reprieve to companies affected by a ban on Chinese telecom company Huawei.
About 15 minutes into trading, the Dow Jones Industrial Average stood at 25,789.33, up 0.4 percent.
The broad-based gained 0.6 percent to 2,857.35, while the tech-rich Nasdaq Composite Index advanced 0.8 percent to 7,760.83.
Stocks fell sharply on Monday after Google began to sever ties with Huawei. But the US Commerce Department announced late Monday it would delay implementation of the ban for 90 days to allow companies to adjust their operations and avoid sudden disruption.
The delay helped lift stocks early Tuesday but analysts said the Huawei controversy still underscores the brittleness of US-China relations amid protracted trade negotiations.
"This is a Band-Aid that will stop some of Monday's bleeding for a bit but it's not a permanent stitch," said Briefing.com analyst Patrick O'Hare.
"In effect, market sentiment is being leased from one day to the next, paced by the headline du jour that 'sets the tone' with respect to dealings on trade matters."Google parent Alphabet gained 0.5 percent, while chip companies Qualcomm and Micron Technology rallied after falling on Monday.
Tesla Motors fell 2.0 percent following another downcast analyst report about the company's prospects, this time from Morgan Stanley. Analysts have pointed to a cost-cutting push from Chief Executive Elon Musk as evidence that the company's troubles are deeper than expected.