The Dow Jones Industrial Average gained almost 200 points on Tuesday, reaching 25,877. The S&P 500 ended the day at 2,864, after growing by 0.9%. The tech sector did even better, posting a 1.2% climb for the day. Nasdaq also showed strong movement up, rising by 1.1% to 7,785.
Analysts believe the market was reacting to the decision by the Commerce Department on Monday night to allow Huawei to buy American products so they can maintain their existing networks and allow owners of Huawei phones to receive updates to their software. The agreement is only until August 19, but at least for now it means consumers with Huawei handsets will enjoy uninterrupted service.
Investors were worried that the original basket of restrictions was a sign that the trade war between China and the USA was getting worse.