Stocks open higher after China says that cuts to tariffs on autos are coming
The Dow Jones industrial average rose 36 points, with General Electric as the best-performing stock in the index. The S&P 500 gained 0.2 percent as tech rose half a percent. The Nasdaq composite advanced 0.4 percent.
The Chinese Finance Ministry said tariffs on certain vehicles will come down to 15 percent from as much as 25 percent while levies on some parts will be brought down to 6 percent effective July 1.
Shares of Ford, General Motors and Tesla all rose on the news, gaining about 1 percent Tuesday.
The announcement by China comes after Treasury Secretary Steven Mnuchin told CNBC on Monday the U.S. has made "very meaningful progress" with China on trade matters, noting: "Now it's up to both of us to make sure that we can implement it."
"We may already be getting some relief on one of the major issues that has weighed on the market since early February, when President Donald Trump threatened to impose tariffs on the US's major trading partners," Ed Yardeni, president and chief investment strategist at Yardeni Research.
Rising trade tensions between the U.S. and China, coupled with rising rates and inflationary fears, pushed stocks off of record highs earlier this year. Since then, the major indexes have recovered slightly from those losses.
In corporate news, shares of Lowe's rose 3.3 percent after the company announced that J.C. Penney CEO Marvin Ellison would become its new chief executive. The news also sent J.C. Penney's stock down 7.2 percent.