Wall Street shrugged off trade tensions with a rally in stocks on Tuesday, with the S&P 500 index, Nasdaq Composite Index and the Dow Jones Industrial Average all higher.
The latest 10 percent tariffs on $200 billion on Chinese imports by the Trump administration saw an escalation in the trade war between the U.S. and China on Monday.
The levy goes into effect on September 24 and the rate will increase if China refuses to offer trade concessions in January 25th. In a tit for tat reaction China announced that they would hit a 5 percent to 10 percent tariffs on wheat to textiles, on Tuesday.
Amounting to $60 billion the Chinese tariffs include an additional 5 percent duty on around 1,600 products that range from aircraft, textiles, and computers. Also is an extra 10 percent on 3,500 items which include, meat, wheat, chemicals wine and LNG.
Senior Vice President at Wedbush Securities, Stephen Massocca reportedly said that at this point there is a lot more pressure on the Chinese to reach a deal.
Tech stocks gained on the NYSE bolstered by the gains in Apple shares which gained 0.2 percent following the news that they had escaped the tariffs. Fitbit shares also gained 6.4 percent.
The biggest U.S. exporter to China, Boeing shares gained 2.1 percent leading the advance in the Dow Jones Industrial.
Nike Inc. reached an all-time high, gaining 2.4 percent.
The Dow Jones Industrial average gained 0.71 percent or 184,84 points to 26,246.96.
The S&P 500 gained 0.54 percent or 15.51 points to 2,904.31, posting 39 new 52 week highs and three new lows.
The Nasdaq Composite rose 0.76 percent or 60.32 points to 7,956.11 posting 58 new highs and 83 new lows.
On the NYSE advancing issues outnumbered declining ones by a ratio of 1.35-to-1 ratio.
On the Nasdaq there was a 1.42-to-1 ratio favoured advancers.
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