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U.S. Stocks Holding On To Notable Gains In Mid-Day Trading

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After moving notably higher early in the day, stocks remain firmly positive in mid-day trading on Tuesday. The tech-heavy Nasdaq is posting a particularly strong gain after falling sharply in the previous session.

Currently, the major averages are off their best levels of the day but holding on to strong gains. The Dow is up 136.79 points or 0.5 percent at 25,816.69, the Nasdaq is up 84.66 points or 1.1 percent at 7,787.03 and the S&P 500 is up 22.46 points or 0.8 percent at 2,862.69.

The rebound on Wall Street comes in reaction to news that the U.S. Commerce Department has temporarily eased trade restrictions on Chinese tech giant Huawei.

The Commerce Department issued a temporary license authorizing specific, limited engagement in transactions involving the export, re-export, and transfer of items to Huawei for 90 days.

Commerce Secretary Wilbur Ross said the temporary reprieve grants "operators time to make other arrangements and the Department space to determine the appropriate long term measures for Americans and foreign telecommunications providers that currently rely on Huawei equipment for critical services."

"In short, this license will allow operations to continue for existing Huawei mobile phone users and rural broadband networks," he added.

The move by the Trump administration led U.S. tech giant Google to reverse an earlier decision and announce it will continue to work with Huawei over the next 90 days.

Tech stocks are rebounding on the news after falling sharply in the previous session amid reports of companies cutting off supplies to Huawei.

Meanwhile, traders have largely shrugged off a report from the National Association of Realtors showing an unexpected drop in existing home sales in the month of April.

NAR said existing home sales dipped by 0.4 percent to an annual rate of 5.19 million in April after plunging by 4.9 percent to a rate of 5.21 million in March.

The continued decrease came as a surprise to economists, who had expected existing home sales to jump by 2.7 percent to a rate of 5.35 million.

Sector News

Semiconductor stocks continue to turn in some of the market's best performances in mid-day trading after falling sharply in the previous session.

Reflecting the rebound by the sector, the Philadelphia Semiconductor Index has spiked by 2.2 percent after plunging by 4 percent on Monday.

Substantial strength has also emerged among oil service stocks, as reflected by the 2 percent jump by the Philadelphia Oil Service Index.

The rally by oil service stocks comes despite a modest decrease by the price of crude oil, with crude for July delivery slipping $0.04 to $63.17 a barrel.

Biotechnology, steel, and computer hardware stocks are also seeing considerable strength on the day, moving higher along with most of the other major sectors.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Tuesday. Japan's Nikkei 225 Index edged down by 0.1 percent, while China's Shanghai Composite Index surged up by 1.2 percent.

Meanwhile, the major European markets have all moved to the upside on the day. While the German DAX Index has advanced by 0.9 percent, the French CAC 40 Index is up by 0.4 percent and the U.K.'s FTSE 100 Index is up by 0.2 percent.

In the bond market, treasuries are extending the moderate drop seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 1.6 basis points at 2.432 percent.

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