You’d have to see it to believe it.
After days of losing hundreds of points, the Dow Jones is up 409 at the moment. The S&P 500 tacked on 47. The NASDAQ added 172.
All as the U.S. removes some items from the list of new Chinese tariffs, and on news that pesky 10% tariff set for September 1, 2019 has been delayed to December 15, 2019.
In fact, the United States Trade Representative just noted that “certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent,” as quoted by CNBC.
Remaining tariffs on “cell phones, laptop computers, video game consoles, certain toys, computer monitors and certain items of footwear and clothing,” will be delayed until Dec. 15.
Apple for example is up 5% on that news. Caterpillar is up 4%.
Even shares of Mattel and Hasbro were picking up sizable momentum after the U.S. Trade Representative announced it would delay tariffs on toys, too.
A 180 Turn from Trade War Disaster
All of this comes just days after tensions flared after the Trump administration threatened to impose 10% tariffs on $800 billion of new goods beginning on September 1, on top of the 25% already in place on $250 billion worth of Chinese imports.
Hopefully, we’ll see even better news ahead of August 19, 2019.
That’s when the 90-day exemption will expire on certain export restrictions with Huawei. “A further extension appears unlikely given the U.S. government announced that federal agencies are prohibited from doing business with Huawei,” says Goldman Sachs, as quoted by MarketWatch. “Huawei sales outside of China will face risk immediately after Aug 19.”
From here, it’ll be interesting to see what happens next.