Stocks rose after the White House delayed imposing tariffs on some consumer and electronic goods imported from China that were set to go into effect on Sept. 1.
The delay, the latest twist in the on-again off-again trade war between the world’s two largest economies, pushed shares of retailers, computer-chip makers and other technology firms sharply higher. The S&P 500 index rose more than 1.5 percent in early trading, recovering from a 1.2 percent drop on Monday.
Investors have been unnerved recently by indications that the trade war between the United States and China was worsening quickly, so the signs of easing tension were seen as a relief.
The United States trade representative’s office said that a new 10 percent tariff on roughly half the Chinese goods exported to the United States would still take effect on Sept. 1 as announced by President Trump.
But tariffs on consumer electronics, video game consoles, certain toys, computer monitors and some footwear and clothing items will be delayed until Dec. 15, giving retailers time to stockpile the products they need for the back-to-school and holiday shopping seasons.
Financial markets have been whipsawed this month after a trade truce reached in late June seemed to fall apart when President Trump threatened to impose the new tariffs and China allowed its currency to weaken sharply. Those developments suggested the two countries were girding for a prolonged battle with profound implications for the world economy.