Wall St rebounds while trade fears ease



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Wall Street rebounded in a context of widespread recovery, investors dismissed the intensification of commercial rhetoric between the United States and China.

The three leading US indices closed higher on Tuesday after Monday's liquidation.

Late Monday, US President Donald Trump announced that tariffs of 10% on 200 billion US dollars (277 billion Australian dollars) from China would come into force next week.

China reacted Tuesday by revealing 10% of rights on about 60 billion US dollars of US products, also from 24 September.

"Initially, they were talking about rates in the range of 20 to 25% and they were reduced to 10%," said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco. "Maybe these numbers will not be as bad as we originally thought.

"There is much more pressure on the Chinese to reach an agreement than on the United States," said Massocca.

New technologies have been bolstered by the announcement that the maker of Apple gadgets and Fitbit fitness would escape tariffs. Apple's shares closed up 0.2% while Fitbit shares rose 6.4%.

Trade-sensitive manufacturers gained ground with Boeing Co finishing up 2.1%. The aircraft manufacturer, the largest US exporter to China, led the Dow Jones Industrial Average.

Nike also strengthened the benchmark while Telsey Advisory Group raised its price target. The stock reached a historic high, up 2.4%.

The Dow Jones Industrial Average advanced Tuesday by 184.84 points, or 0.71%, to 26,246.96, the S & P 500 15.51 points, or 0.54%, to 2,904.31 and the Nasdaq Composite added 60.32 points, or 0.76%, to 7,956.11.

Consumer discretionary was the best performing of the top 11 S & P 500 sectors, up 1.3%.

The energy sector grew 0.7% as crude oil prices mounted signs that OPEC was unwilling to increase production to cope with the contraction in Iranian supplies.

Among the losers, Tesla sank 3.4 percent after announcing that it had received a request for US Justice Department documents regarding public statements by chief executive Elon Musk on the privatization of the company.

Insurer Marsh & McLennan slid 4.0% in its announcement to buy UK insurance and reinsurance broker Jardine Lloyd Thompson for US $ 5.7 billion.

Defensive groups lagged behind, as consumer staples lost 0.4%. General Mills dropped 7.6% after missing analysts' quarterly sales estimates, pushing shrinking packaged food stocks by almost 26%.

The progression of the problems is higher than that of the securities falling on the New York Stock Exchange by a ratio of 1.35 to 1; on the Nasdaq, a ratio of 1.42 to 1 favored advances.

The S & P 500 recorded 39 new 52-week highs and three new lows; The Nasdaq Composite recorded 58 new highs and 83 new lows.

The volume on the US stock exchanges was 6.39 billion shares, compared to the average of 6.20 billion for the full session of the last 20 trading days.

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