The leading stock market rallied in a sudden shift after the U.S. reported it was delaying China tariffs until December on further goods such as cellphones and some clothing.
The Dow Jones Industrial Average gained 404 points. The S&P-500 added 1.7%, and the Nasdaq Composite surged 2%, led by Apple, which rose more than 4%.
Best Buy advanced a whole 10%, while Nike jumped 2%. Macy’s and Nordstrom also both soared 4%. Consumer prices jumped more quickly than the estimate in July as gasoline reversed a two-month decline and the cost for rent continued to climb.
The consumer price index for all items added 0.3% for the month, versus the forecast of an increase of 0.2%. Gasoline rose 2.5% while shelter costs increased by 0.3%.
The Fed is generally likely is to retreat from its benchmark overnight lending rate another 25 basis points in September.