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Technology companies run a wide meeting on Wall Street



Technology companies held a meeting on Wall Street Monday that gave the market its third straight win.

The wave of tech stocks followed a US decision to give Chinese telecom giant Huawei another 90 days to buy equipment from US suppliers. Chipmakers including Qualcomm, Intel and Micron all rose.

The decision to give Huawei more time to buy goods from US companies seemed to put investors eager for any signs of progress in the US-China trade war in the buying mood.

The acquisition went far beyond technology, with shares in communications services, health care and retailers having high profits. Financial equities also rose as bond prices went lower, yielding higher returns. Energy stocks rose after a 2.4% rise in US crude oil prices.

"Today is an open day because we have some better news about China," said Kate Warne, chief investment strategist at Edward Jones. "There are likely to be many of these 1

% higher, 1% lower days, as investors search for a longer-term direction. And that's what we haven't yet."

The S&P 500 climbed 34.97 points, or 1, The Dow Jones industrial average rose 249.78 points, or 1%, to 26,135.79. The index briefly gained 336 points.

Nasdaq, which is heavily weighted with technology stocks, rose 106.82 points, or 1.3%, to 8,002.81.

The company's smaller shares also had a good day, with the Russell 2000 index gaining 15.21 points, or 1%, at 1,508.85.

The stock indices in Europe also ended solidly higher.

Despite the recent gain, US stock indices are on the verge of ending the month of losses. whether a recession is on the horizon. An important concern is that the escalating and costly trade The conflict between the world's two largest economies will hamper growth across the globe.

Last week, many stock indices around the world hit their lowest levels this year, before a late rise suggested some tranquility was returning to markets in the traditional low-volume era. Analysts say the worries that drove last week's sales could reappear at any time.

"Investors just need to be prepared for a lot of ups and downs as markets move," Warne said.

The market move on Monday suggested that investors' anxiety was the backbone of optimism over the US decision on Huawei, at least for a day.

This could be seen in the bond market, where returns increased. This is a reversal from much of August, as returns largely fell as investors sought the security of government bonds as the US-China conflict escalated. On Monday, the return on the 10-year Treasury climbed to 1.61% from 1.54% late Friday.

The increase in bond yields helped drive financial stocks higher. Wells Fargo added 1.9% and Citigroup increased 1.3%.

Investors weigh how much of the impact the Washington-Beijing trade conflict will have on global economies, some of which are already showing signs of slowing.

Earlier this month, Trump announced plans to expand tariffs on virtually all Chinese imports, many of them consumer products that were exempt from early rounds of tariffs. Tariffs are delayed, but will eventually increase the cost of US companies importing goods from China.

Huawei has become part of the trade war, with the White House showing a willingness to use sanctions against the company as a bargaining chip. The US government blacklisted Huawei in May, and considered it a national security risk, meaning that US firms are not allowed to sell the company's technology without government approval.

Investors hailed the Trump administration's decision to extend a limited exposure to US sales to Huawei as a positive sign. Nvidia jumped 7%, Qualcomm added 2.2%, Micron Technology gained 3.4% and Intel picked up 1.6%.

Apple rose 1.9% on news that CEO Tim Cook met with President Trump this weekend, discussing how US tariffs on imported Chinese goods make it tougher for the iPhone manufacturer to compete with rival Samsung.

Apple has manufacturing facilities in China, while Samsung builds its products mainly in South Korea. "I thought he made a very compelling argument, so I think about it," Trump told reporters.

Large department store chains also rose Monday, recovering some of the ground lost last week after Macy's set the year-end profit forecast. Nordstrøm gained 3.1% and Gap added 4.4%. Macy's rose 0.9%.

This week gives investors a couple of opportunities to measure the Federal Reserve's willingness to cut rates further.

The central bank publishes the minutes of its last meeting with policy makers on Wednesday. Two days later, Fed Governor Jerome Powell is scheduled to give a speech at the central bank's annual conference in Jackson Hole, Wyoming.

Investors hope the Fed will continue to cut interest rates to boost economic growth. The Fed lowered interest rates by a quarter point at its last meeting. It was the first time it had lowered interest rates in a decade.

In two tweets on Monday, President Donald Trump asked the Fed to cut interest rates by at least a full percentage point "over a fairly short period of time", saying that such an action would make the US economy even better and would also "strongly and quickly" strengthen the global economy.

Dealers will weigh new data on sales of new US homes Friday and revenue reports from several major retailers this week, including Home Depot, Target and Gap, for any clues about consumer spending health.

US crude rose $ 1.34 to settle at $ 56.21 a barrel. Brent crude, the international standard, rose $ 1.10 to close at $ 59.74 a barrel. Wholesale gasoline remained unchanged at $ 1.66 per gallon. Heat oil climbed 2 cents to $ 1.83 per gallon. Natural gas rose 1 cents to $ 2.21 per 1,000 cubic feet.

Gold fell $ 12.10 to $ 1,500.40 per ounce, silver fell 19 cents to $ 16.91 per ounce and copper rose 1 cents to $ 2.60 per pound.

The dollar rose to 106.62 yen from 106.29 yen on Friday. The euro depreciated to $ 1.1082 from $ 1.1093.


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