The Dow Jones industrial average traded 600 points higher, with Microsoft as the best-performing stock in the index.
The move higher comes after the major averages posted their worst week since January 2016 amid fears of a trade war between China and the U.S.
Earlier, the Financial Times reported China has offered to buy more semiconductors from the U.S. to help cut its trade surplus with the U.S.
The Dow Jones Industrial Average and the S&P 500 index rallied to trade at session highs late Monday afternoon, with the benchmarks on track to post their sharpest one-day climb since Aug. 26, 2015, according to FactSet data. The Dow DJIA, +2.58% was up about 611 points, or 2.56, at 24,147. Meanwhile, the S&P 500 index SPX, +2.39% was trading up 62 points, or 2.4%, at 2,650, also on track for the best daily rise since late August of 2015. A cooling of tensions around trade between the U.S. and China has given way to a powerful rally for U.S. stocks, which are coming off the worst weekly decline in more than two years. Meanwhile, the Nasdaq Composite Index COMP, +2.74% surged 2.8% to 7,186, also putting the technology-heavy index on pace for its best one-session gain in about 2 1/2 years. https://www.marketwatch.com/Story/dow-in...
Wall Street was higher on Tuesday, building on strong gains from the previous session on waning fears of a trade war between the United States and China.
All the 11 major S&P sectors were higher, with financial and technology stocks topping the list.
U.S. stocks suffered their worst declines of the year last week after President Donald Trump moved to impose tariffs on Chinese imports of up to $60 billion, adding to the import restrictions already placed on solar panels, steel and aluminum. Those concerns have eased following reports the United States and China are willing to renegotiate tariffs and trade imbalances.
"There's going to be continued volatility in the short term and a lot of it will depend on how the fundamental news flow comes out," said Lisa Erickson, head of traditional investments at U.S. Bank Wealth Management in Helena, Montana.
"Right now the biggest driver in the market seems to be around the trade news and it is looking more and more like some of these tariff discussions are negotiations rather than strong protectionist measures."