U.S. stocks bounced back on Tuesday, led by gains in technology shares, as China stepped in to stabilize the yuan, a day after Wall Street’s main indexes racked up their steepest one-day percentage fall of the year.
The benchmark S&P 500 .SPX and Nasdaq .IXIC lost at least 3% each on Monday, their sixth straight day of losses, after China let the yuan drop sharply, prompting the U.S. Treasury Department to label Beijing as a currency manipulator.
China’s move to fix the yuan at a slightly stronger rate overnight, however, allayed fears of an escalating trade war, which has been fueled by President Donald Trump’s threat to slap a new round of tariffs on Chinese imports last week.
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