U.S. Markets open in 3 hrs 38 mins

Stocks- Dow Recovers as U.S. Eases Huawei Restrictions for Now

Investing.com - U.S. futures rallied on Tuesday after the U.S. temporarily eased its restrictions on Chinese tech giant Huawei.

In an attempt to minimize disruption to American technology companies, the U.S. Commerce Department announced it would allow Huawei to purchase some U.S.-made goods until August 19 to maintain existing networks.

Huawei founder Ren Zhengfei said the changes wouldn't make a difference, as the company had already prepared for U.S. sanctions.

Dow futures rose 141 points or 0.6% by 6:41 AM ET (10:41 GMT), while tech-heavy Nasdaq 100 futures gained 71 points or 1% and S&P 500 futures was up 17 points or 0.6%

Technology stocks had slumped on Monday as the market feared the ban would impact U.S. companies like Apple (NASDAQ:AAPL) and Qualcomm (NASDAQ:QCOM).

Qualcomm recovered 2.6% in premarket trading, while Apple was up 1.3% and Intel (NASDAQ:INTC) rose 1.7%.

Elsewhere, Home Depot 's (NYSE:HD) earnings beat estimates, but same store sales fell short of expectations. The stock was effectively unchanged.

Tesla (NASDAQ:TSLA) fell 2.7% after hitting its lowest level since 2016 on Monday due to concerns over its viability. A report from Morgan Stanley (NYSE:MS) said that Tesla stock is worth only $10 in a worse-case scenario.

Sprint (NYSE:S) and T-Mobile (NASDAQ:TMUS) will remain in focus Tuesday after rising 18% and 3.9% respectively on Monday, a day when the Federal Communications Commission and the Department of Justice sent mixed messages over whether they would approve their planned merger.

On the economic front, existing home sales data is at 10:00 AM ET (14:00 GMT). Speeches from Chicago Federal Reserve President Charles Evans and Boston Fed president Eric Rosengren are also expected.

In commodities, crude oil gained 0.7% to $63.67 a barrel. Gold futures fell 0.1% to $1,275.45 a troy ounce, while the U.S. dollar index, which measures the greenback against a basket of six major currencies, rose 0.2% to 97.907.

Related Articles

Fingerprints and finances: next Wells Fargo CEO will be under regulatory microscope

Merck to buy cancer drug developer Peloton for $1.05 billion in cash

India stocks lower at close of trade; Nifty 50 down 1.01%