- Tech shares post strong gains on Tuesday.
- Nasdaq gains more than 1%.
- Every major sector other than consumer staples close in the green.
Major equity indexes in the U.S. started the day higher on Tuesday boosted by the U.S. decision to ease trade restrictions imposed on Chinese telecommunications-giant Huawei. Following the strong start, Wall Street preserves its momentum and the Dow Jones Industrial Average gained 0.72% while the S&P 500 and the Nasdaq Composite added 0.88% and 1.06%, respectively. Reflecting the upbeat risk sentiment today, the CBOE Volatility Index, Wall Street’s fear gauge, dropped more than 8%.
Commenting on today’s market action, “The groups that have been beaten up for the past couple of days have gotten a reprieve. Huawei cast a cloud over tech. It’s so broad-based in how many companies connect with it,” Keith Lerner, chief market strategist at SunTrust Advisory Services in Atlanta, told Reuters.
Among the 11 major S&P 500 sectors, Consumer Staples lost 0.3% to become the only index to close in the negative territory. On the other hand, Technology and Communication Services rose 1.2% and 1%, respectively.