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US stocks jump as Trump delays some key China tariffs

Wall Street stocks surged early Tuesday after the US government announced it was delaying tariffs on key consumer electronic goods imported from China.

Major indices rallied more than one percent after Washington pushed back imposition of the 10 percent tariffs until December 15 for products that included cell phones, laptops and video game systems.

The rally was led by companies that had fallen the most after the initial tariff announcement, including toymakers, apparel companies and retailers.

Near 1440 GMT, the Dow Jones Industrial Average was up 1.7 percent at 26,334.30.

The broad-based S&P 500 also climbed 1.7 percent to 2,931.56, while the tech-rich Nasdaq Composite Index jumped 2.1 percent to 8,028.48.

Shares of Apple surged 4.3 percent, while electronics retailer Best Buy jumped 8.5 percent. Nike won 2.8 percent, Macy's 3.2 percent and toymaker Hasbro 5.2 percent.

Stocks have been pressured since US President Donald Trump earlier this month announced plans to impose tariffs on $300 billion in Chinese imports on September 1.

Beijing retaliated by halting purchases of US agricultural goods, spawning talk the economic powers may not resolve the longstanding conflict until after the 2020 US presidential election.

US stocks lost more than one percent on Monday amid worries over slowing global growth, the US-China trade war and turbulence in a number of international hot spots, including Hong Kong.

Trump's latest tariff plan, announced on August 1, raised fears of a broader economic fallout because the tariffs were to be added directly on consumer products rather than on raw materials.

A report Monday from Goldman Sachs raised the estimate of the economic hit from the trade war and predicted the conflict would not be resolved until after the 2020 US presidential election.