US stocks end higher amid trade optimism

New York: Bouncing back from the steep losses of the previous day, US stocks closed higher, as the market was supported by easing US-China trade tensions.

The Dow Jones Industrial Average increased 372.54 points, or 1.44 percent, to 26,279.91 on Tuesday. The S&P 500 was up 42.57 points, or 1.48 percent, to 2,926.32. The Nasdaq Composite Index increased 152.95 points, or 1.95 per cent, to 8,016.36, Xinhua reported.

Shares of JD.com surged nearly 12.9 percent after the Chinese e-commerce giant reported second-quarter revenue that topped market expectations, boosted by its robust sales growth in e-commerce.

The overwhelming majority of the 30 blue-chip stocks in the Dow extended gains around market close, with shares of Apple rallying over 4.23 percent, leading the gainers.

Shares of widely-seen trade bellwethers Intel and Cisco Systems rose over 2.72 percent and 2.29 percent, respectively, among the best performers.

Semiconductor stocks, also sensitive to US-China trade relations, jumped around the closing bell, with the Philadelphia Semiconductor Index up 2.95 percent.

All of the 11 primary S&P 500 sectors traded higher around market close, with the information technology sector up nearly 2.5 percent, leading the gainers.

On the economic front, the US Consumer Price Index increased 0.3 percent in July on a seasonally adjusted basis after rising 0.1 percent in June, the US Bureau of Labor Statistics said Tuesday.

Increases in the indexes for gasoline and shelter were the major factors in the seasonally adjusted all items monthly increase. Over the last 12 months, the all items index increased 1.8 percent before seasonal adjustment.