Stocks finished higher Tuesday as broad strength in the Technology sector provided a tailwind to the major averages. The Dow added 197 points, while the S&P 500 gained 0.8%. The Tech-heavy Nasdaq Composite jumped 1.1%.
The rally in U.S. equities was attributed to reports that The Commerce Department will grant Chinese Telecom giant Huawei a temporary waiver to purchase U.S. goods through August 19th. The move follows Monday’s session in which stocks were pressured on news that Google parent Alphabet and semiconductor manufacturers would halt chip supply to Huawei to comply with President Trump’s executive order. The positive updates helped the Philadelphia Semiconductor Index rebound 2.1% today which follow yesterday’s decline of 4.0%.
Technology stocks paced the gains as strength in semi-conductors helped the sector climb 1.2%. Materials and Industrials also outperformed as the groups advanced 1.5% and 1.2% respectively. In earnings news, Home Depot lost 0.3% to $191.45 after the home improvement retail chain posted the slowest same-store sales growth in three years. Shares of Kohl’s slumped 12.4% to $55.13 after a disappointing drop in comparable-store sales and a reduction to its full-year guidance.
Breadth was positive on issues by roughly 4:1 on the NYSE and 11:5 on the Nasdaq. Composite NYSE Volume totaled more than 3.1 billion shares.
Treasuries were weaker, with the yield on the 10-year note up two basis points to 2.43%. On the data front, a report showed existing home sales slipped 0.4% in April, missing expectations for a 2.7% rebound. In commodities, WTI crude declined 0.1% to $63.02/barrel.