US stocks close higher after sharp declines

New York: US stocks ended higher after sharp declines in the previous session.

The Dow Jones Industrial Average on Wednesday added 230.94 points, or 0.96 per cent, to 24,264.30, Xinhua news agency reported.

The S&P 500 increased 30.24 points, or 1.16 per cent, to 2,644.69. The Nasdaq Composite Index was up 100.83 points, or 1.45 per cent, to 7,042.11.

Earlier in the day, US equities slumped broadly, with the Dow plunging over 500 points, as investors were assessing the trade tensions between China and the US.

China on Wednesday unveiled a list of products worth $50 billion imported from the US that will be subject to higher tariffs, including soy bean, automobiles and chemical products.

The move was taken after the US administration announced a proposed list of products subject to additional tariffs, which covers Chinese exports worth $50 billion with a suggested tariff rate of 25 per cent.

The date of implementation will depend on when the US government imposes the tariffs on Chinese products, the Ministry of Finance said.

The Ministry of Commerce said in a statement that the US move was “an evident violation of relevant rules of the World Trade Organization (WTO).”

Oil prices also retreated on Wednesday as trade tensions between China and the US dampened investor sentiment.

The West Texas Intermediate for May delivery fell $0.14 to settle at $63.37 a barrel on the New York Mercantile Exchange, while Brent crude for June delivery lost $0.10 to close at $68.02 a barrel on the London ICE Futures Exchange.