Technology stocks fueled a rebound on Wall Street on Tuesday after the United States temporarily eased curbs on China’s Huawei Technologies, raising expectations that the two countries would work toward a trade deal.
Chipmakers, which bore the brunt of Monday’s sell-off, rose after the United States granted the Chinese telecoms equipment maker a license to buy U.S. goods until Aug. 19.
The Philadelphia Semiconductor Index gained 2.09% and was on track to end a three-day slump. Shares of Huawei suppliers such as Intel Corp, Qualcomm Inc, Xilinx Inc and Broadcom Inc rose between 1% and 3.5%.
The broader S&P 500 technology sector rose 1.21%, the most among the 10 major S&P sectors trading higher.
“It was a positive move on behalf of the Trump administration because at certain point we do need a trade agreement and it shows that they are still focused on getting a deal done,” said John Traynor, chief investment officer at People’s United Wealth Management.
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