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  • Technology shares rise sharply on US decision to delay Huawei ban.
  • CBOE Volatility Index erases more than 5% to confirm upbeat mood.
  • Rising US T-bond yields boost financial shares in early trade.

Major equity indexes in the United States started the day sharply higher as signalled by the impressive rally witnessed in the stock index futures. As of writing, the Dow Jones Industrial Average was up 1.1% on the day while the S&P 500 and the Nasdaq Composite were gaining 1.2% and 1.7%, respectively. The CBOE Volatility Index, Wall Street’s fear gauge, is now down more than 5% on the day to confirm the upbeat sentiment.

Earlier today, US Commerce Secretary Ross announced that they will be extending the “temporary general license” for Huawei for 90 days, allowing US companies to continue to sell to the Chinese technology giant.  The S&P 500 Technology Index and the Communication Services Index both gained traction on this development and were both leading the rally by adding 1.7%.  

Additionally, risk-on flows allowed the 10-year US Treasury bond yield to gain as much as 5%  on Monday and supported the rate-sensitive S&P 500 Financials Index, which was last up 1.3% on the day.

On the other hand, the defensive S&P 500 Utilities and Real Estate sectors are staying virtually unchanged on the day.