What's moving markets today: May 21, 2019

Wall Street continues to be laser-focused on the evolving US crackdown on Huawei.

The Dow rallied 150 points, or 0.5%, on Tuesday morning as investors express relief over the Commerce Department loosening some restrictions placed on Huawei. The S&P 500 advanced 0.7%, while the Nasdaq jumped 1%.

“Bulls are hoping the gains can hold throughout the day, but all it takes is one tweet,” Paul Hickey, co-founder of Bespoke Investment Group, wrote in a note to clients.

The open represents a rebound from Monday’s drop, which was driven in large part by concerns about the Trump administration’s crackdown on China’s Huawei. Late Monday, US officials announced they would temporarily ease a ban that made it difficult for American companies to do business with Huawei.

Chip stocks rallied on the news, led by Qualcomm (QCOM), Micron (MU) and Nvidia (NVDA).

Kohl’s (KSS) tumbled 13% after posting dismal earnings and slashing its full-year forecast. JCPenney (JCP) dropped 8% after suffering a quarterly loss and a steep decline in sales.

Tesla (TSLA) declined 3% following a bearish research report from Morgan Stanley.

On the other hand, Boeing (BA) rallied nearly 2% after The Wall Street Journal reported that US aviation authorities believe a bird collision may have played a role in the Ethiopian Airlines crash.

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