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Wall Street gains as trade worries subside

Reuters 

By Sruthi Shankar

(Reuters) - U.S. stocks rose on Monday on signs of easing trade tensions between the and after softened his stance on Chinese company ZTE Corp.

Trump on Sunday pledged to help ZTE "get back into business, fast" nearly a month after the banned American companies from selling to the firm for violating an agreement.

Trump's comments came ahead of trade talks between the two countries this week as they look to resolve the escalating trade dispute.

"At the moment, the market is breathing a sigh of relief that some of the fears over tariffs and inflation, in particular, have not been realized," said Mike Baele, at Client Wealth Management in Portland,

"We are still not out of the woods, but it hasn't escalated. The market is seeing it as a positive."

Shares of some of the biggest suppliers to ZTE, including Acacia Communications, and Lumentum Holdings, rose between 10.6 percent and 3.1 percent.

Chip stocks got a boost from that had resumed its review of chipmaker Qualcomm's proposed $44 billion takeover of NXP surged 14.2 percent and 3 percent.

The index was up 1.6 percent.

At 12:53 p.m. ET, the was up 102.65 points, or 0.41 percent, at 24,933.82, the 500 was up 5.79 points, or 0.21 percent, at 2,733.51 and the Composite was up 28.55 points, or 0.39 percent, at 7,431.43.

The defensive utilities, telecoms and were the only three losers among the sectors, while and were the biggest boosts.

were the biggest percentage gainers, rising 0.8 percent as rose after OPEC reported that the global glut has been virtually eliminated. [O/R]

"There is renewed vigor in the around the belief that maybe prices can stay up this time. That's something new that the markets had not been playing," said John Augustine, at in Columbus,

tumbled 5.7 percent after the U.S. scrapped a planned $6.1 billion deal with

declined 6.7 percent after filed a lawsuit to stop controlling shareholder from continuing with her plan to merge it with Viacom. CBS rose 3.2 percent.

Advancing issues outnumbered decliners for a 1.19-to-1 ratio on the NYSE and for a 1.04-to-1 ratio on the

The index recorded 24 new 52-week highs and two new lows, while the recorded 106 new highs and 27 new lows.

(Reporting by in Bengaluru; Editing by Anil D'Silva)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, May 14 2018. 23:22 IST
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