DOW RIGHT NOW | Tariff delay sends US stocks soaring

Stocks tore higher on Wall Street after the latest turn in the U.S.

Financial markets have fully priced in a rate cut at the USA central bank's September meeting following a recent escalation in the bruising trade war between the United States and China.

Wall Street snapped a two-day losing streak - and sent shares of Apple soaring - after the U.S. said it will delay imposing tariffs on certain items that were supposed to take effect on September 1.

The news sent the stocks of USA companies that make electronics, shoes and toys sharply higher. Shares of Apple, Mattel and shoe brand Steve Madden shot up on the news.

The news sent the Dow Jones Industrial Average up more than 460 points in midmorning trading.

With the initial market reaction, major equity indexes in the U.S. gained traction with the Nasdaq Composite almost gaining 2% as of writing and the S&P 500 adding 1.3%.

Bond prices fell. The yield on the 10-year Treasury rose to 1.68%.

Previous tariffs were very targeted on some sectors, but the latest tariff move would have hiked prices on a wide variety of cheap consumer goods that USA shoppers buy from China en masse.

Further US tariffs on some Chinese imports are set to be delayed until December 15, the United States Trade Representative (USTR) has announced.

"The overall China tariff/demand situation represents a $20-$25 overhang on Apple shares and will remain a lingering cloud over the story in the near-term", Ives wrote in a note published August 13, prior to the news about the tariff delay. The S&P 500 index was up 1.5%. The Nasdaq jumped 2%.

Stocks shook off an early stumble and edged higher on Wall Street led by gains in technology and health care companies.

Apple's stock price was up 3.66 percent, to $207.82 a share, as of late morning Tuesday.

USA indexes are still down about 3% for the month as investors are unsettled by trade tensions between the US and China, protests in Hong Kong and political instability in Argentina.

Among specific semiconductor stocks, Texas Instruments rose 2.4%, Micron Technology spiked 6.2% and Applied Materials was up 2.5%.

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