Futures bounce as US eases restrictions on Huawei

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Traders work at the New York Stock Exchange in New York, the United States, on May 6, 2019. U.S. Xinhua/Wang Ying

(Reuters) – US stock index futures rose yesterday after the United States temporarily eased restrictions on China’s Huawei Technologies, allaying investor concerns over a further escalation in a bitter trade war between the two countries.

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Chipmakers, which bore the brunt of Monday’s sell-off, rose in premarket trading after Washington granted the Chinese telecoms equipment maker a license to buy US goods until Aug 19.

Intel Corp, Qualcomm Inc, Xilinx Inc and Broadcom Inc rose between 1.3 percent and 3 percent.

President Donald Trump added Huawei to a trade blacklist on Thursday, and several companies have suspended business with the world’s largest telecom equipment maker, triggering fears that the decision could have a bigger impact on the global technology sector.

Reuters reported on Sunday that Alphabet Inc’s Google would stop providing Huawei with access to its proprietary apps and services but Huawei said on Tuesday it is working closing with the US company to resolve the restrictions.

At 7:14 a.m. ET, Dow e-minis were up 126 points, or 0.49 percent. S&P 500 e-minis were up 16 points, or 0.56 percent and Nasdaq 100 e-minis were up 61.5 points, or 0.83 percent.

Investors will also turn their attention to earnings from a handful of retailers.

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