Dow jumps 300 points as Wall Street continues its recovery from the August sell off

US stock prices saw to a higher closing on Monday as Treasury yields recovered, easing fears of a possible recession. Equities also managed to gain momentum after the United States agreed to extend a temporary reprieve to Chinese telecoms giant Huawei.

In the early hours of trading in the eastern United States, the Dow Jones Industrial Average futures recorded a rise of about 311 points. Futures for the S&P 500 and the Nasdaq 100 also recorded higher prices.

The gains add to the rebound that began last week after the Dow recorded its worst session in 2019. The index fell 30 points by 800 points, or 3.1 percent, on Wednesday before recovering some of the missing stocks on Thursday and Friday. The S&P 500 is still 3% lower in August, with more than 4% off the last record.

10-year treasury yields also recorded a growth of about 1.61% from about 1.54%. Bank stocks also rose – Bank of America rose 2%, while Citigroup saw a growth of 1.9% and J.P. Morgan Chase rose 1.8%.

Last week, the yield fell to its lowest level in more than three years and was briefly trading below its two-year counterpart. This is referred to as a reversal of the yield curve and traders see it as a possible signal that a recession may be in sight.

US President Donald Trump said on Sunday he saw no recession on the horizon in the United States after a volatile week for markets. “We’re doing tremendously well. Our consumers are rich. I gave a tremendous tax cut and they’re loaded up with money.”

Fears of a recession come as the United States and China enter the trade war. Over the past year, the two countries have imposed tariffs on their goods worth billions of dollars. The United States also targeted Huawei in the trade war, making it difficult for US companies to deal with Chinese communications.

However, the Wall Street Journal and Reuters reported that the Commerce Department is preparing to extend the license for 90 days, which will allow Huawei to continue working with US companies to serve existing customers. The current agreement is due to expire on Monday.

Chip makers rose in reports. Meanwhile, semiconductors and AMD rose more than 2% each while Micron technology gained 1.9%.

Futures also rose after the Chinese central bank unveiled new measures to further lower the real interest rate of enterprises in China in a bid to support slowing economic growth.