US Trade Representative Robert Lighthizer said new tariffs on some of the China-produced goods would be delayed until the middle of December while other products were taken off the tariff list.
The products with the delayed tariff date include cell phones, laptops, videogame consoles, toys and certain clothing and footwear. "Certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10%," Lighthizer's office said.
Ten of the 11 of the Standard & Poor's 500 sectors rose on the day, with eight jumping more than 1%. Only two components of the Dow Jones Industrial Average lost ground.
Tech shares outpaced the advancing sectors, jumping nearly 2.5%. Blue-chips Apple (AAPL) jumped 4.2%, Cisco Systems (CSCO) gained 2.3% and Microsoft (MSFT) added 2.1%.
Nike's (NKE) 2.1% gain helped push consumer discretionary shares up nearly 1.7%. McDonald's (MCD) added nearly 1.2% while Best Buy (BBY) jumped 6.5%.
Communications services ended 1.5% higher. Verizon Communications (VZ) firmed 1.2% while Qualcomm (QCOM) rose 3.4%. AT&T (T) gained 1.1%.
In company news, Avaya (AVYA) soared nearly 15% after the digital-communications provider said it was in "advanced" talks with parties over strategic alternatives.
JD.com (JD) jumped nearly 13% after the Chinese e-commerce major issued new guidance after posting better-than-expected results for its second quarter.
CBS (CBS) rose 1.4% after it and Viacom (VIA, VIAB) announced they would reunite in an all-stock deal. Viacom Class A shares slid 5.6% while the company's Class B shares rose nearly 2.4%.
The Dow rose more than 1.4% while S&P 500 gained almost 1.5%. The Nasdaq Composite gained nearly 2%.
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