US stocks rise after Trump postpones tariff increase

NEW YORK (AP) — Stocks moved broadly higher on Wall Street after President Donald Trump agreed to hold off on raising tariffs on Chinese goods, which would have escalated a damaging trade war between the world's two largest economies.

Investors had been growing increasingly optimistic over the last two weeks that the U.S. and China were moving closer to a resolution in the trade tiff. The fight is over U.S. complaints that Beijing steals or pressures companies to hand over technology.

Information technology and industrial companies led the gains. Consumer goods and utility companies lagged the overall market.

The nations faced a Friday deadline would have increased punitive duties on $200 billion in Chinese imports. Trump did not set a new deadline. He said there had been "productive talks" on some of the more difficult issues and he's willing to meet with Chinese President Xi Jinping if negotiations progress.

The trade war and its hefty tariffs have already raised prices and costs for businesses and consumers. Any additional escalation could shake investor confidence as an economic slowdown looms over China and Europe.

Elsewhere, oil prices fell after Trump said they were getting too high. Industrial giant General Electric rose after it announced plans to sell a biotech unit. Spark Therapeutics doubled after pharmaceutical giant Roche offered to buy the gene therapy developer.

The gains come as investors have a full schedule of economic and corporate news to consider this week.

Retailers, including Macy's, will report their latest financial results this week. The Commerce Department will release fourth-quarter gross domestic product on Thursday and Federal Reserve Chairman Jerome Powell is scheduled for two days of Congressional testimony this week.