By Shreyashi Sanyal
(Reuters) - Trade-sensitive industrial and technology stocks pushed Wall Street higher on Monday after the United States and China agreed on a temporary trade truce, hopes of which had driven the market last week to post its biggest gain in nearly seven years.
However, the White House also said that the existing 10 percent tariffs on $200 billion worth of Chinese goods would be lifted to 25 percent if no deal was reached within 90 days.
Still, the ceasefire was enough to boost S&P technology up 1.55 percent and industrials 1.03 percent, both sectors that have borne the brunt of the escalating trade dispute.
"The fact that we got something positive out of the trade discussions is enough for investors to slowly get back into market, but they are just short covering and not really buying," said Michael Antonelli, managing director, institutional sales trading at Robert W. Baird in Milwaukee.
"Investors are cautiously optimistic, they are dipping their feet back into the water but aren't quite jumping in."
At 11:38 a.m. ET the Dow Jones Industrial Average was up about 1 percent.
Energy stocks rose 1.6 percent as crude prices surged on the trade truce and as Canada's Alberta province ordered a production cut. But their gains had decreased as the rally in oil prices tempered to 3 percent from about 5 percent at the open. [O/R]
Chipmakers, which have the highest revenue exposure to China, also rallied, sending the Philadelphia Semiconductor index up 2.03 percent and back into positive territory for the year.
The defensive real estate, utilities and consumer staples sectors housed most of the laggards.
Advancing issues outnumbered decliners for a 2.16-to-1 ratio on the NYSE and a 1.53-to-1 ratio on the Nasdaq.
The S&P index recorded 34 new 52-week highs and no new lows, while the Nasdaq recorded 64 new highs and 47 new lows.
(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Shounak Dasgupta)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)