Stocks shot higher after the US said it would delay tariffs on Chinese imports of mobile phones, toys and other items typically on holiday shopping lists.

Retailers and makers of electronics and toys rose sharply. Best Buy rose 6.5 per cent, Intel climbed 2.7 per cent and Mattel added 4.6 per cent.

The latest turn in the US-China trade war helped the market erase much of the losses from the previous two days. Markets have been volatile since President Donald Trump announced on Aug. 1 he would impose tariffs on $300 billion in Chinese imports.

The Dow Jones Industrial Average jumped 382 points, or 1.5 per cent, to 26,279.


The S&P 500 added 43 points, or 1.5 per cent, to 2,926. The Nasdaq rose 152 or 1.9 per cent, to 8016.

The yield on the 10-year Treasury rose to 1.69 per cent.

Trump finally admits his tariffs could hit consumers