U.S. stocks closed higher on Tuesday, bouncing back from the steep losses of the previous day, as the market was supported by easing U.S.-China trade tensions.

U.S. President Donald Trump on Tuesday postponed his September 1 deadline for 10 percent tariffs on remaining Chinese imports, delaying duties on cellphones, laptops and other consumer goods, in the hopes of blunting their impact on U.S. holiday sales.

The U.S. Trade Representative's Office announced the decision just minutes after China's Ministry of Commerce said Vice Premier Liu He conducted a phone call with U.S. trade officials, sending stocks sharply higher and drew cautious relief from retailers and technology groups.

Trump's tariff delay comes amid growing concerns about a global economic slowdown. Goldman Sachs said on Sunday fears of the U.S.-China trade war leading to a recession were increasing.

Markets jump

The Dow Jones Industrial Average increased 372.54 points, or 1.44 percent, to 26,279.91. The S&P 500 was up 42.57 points, or 1.48 percent, to 2,926.32. The Nasdaq Composite Index increased 152.95 points, or 1.95 percent, to 8,016.36.

The overwhelming majority of the 30 blue-chip stocks in the Dow extended gains around market close, with shares of Apple rallying over 4.23 percent, leading the gainers.

Shares of widely-seen trade bellwethers Intel and Cisco Systems rose over 2.72 percent and 2.29 percent, respectively, among the best performers.

Semiconductor stocks, also sensitive to U.S.-China trade relations, jumped around the closing bell, with the Philadelphia Semiconductor Index up 2.95 percent.

All of the 11 primary S&P 500 sectors traded higher around market close, with the information technology sector up nearly 2.5 percent, leading the gainers.

On the economic front, U.S. Consumer Price Index increased 0.3 percent in July on a seasonally adjusted basis after rising 0.1 percent in June, the U.S. Bureau of Labor Statistics said Tuesday.

Increases in the indexes for gasoline and shelter were the major factors in the seasonally adjusted all items monthly increase. Over the last 12 months, the all items index increased 1.8 percent before seasonal adjustment.

U.S.-listed Chinese firms trade higher

U.S.-listed Chinese companies traded higher on Tuesday with all of the top 10 stocks by weight in the S&P U.S. Listed China 50 index ending the day on an upbeat note.

Shares of JD.com surged nearly 12.9 percent, after the Chinese e-commerce giant reported second-quarter revenue that topped market expectations, boosted by its robust sales growth in e-commerce, and NetEase rose 10.93 percent, leading the gainers in the top 10 stocks of the index.

As of Monday, the S&P U.S. Listed China 50 index stood at 2,572.51, marking a 4.90-percent decrease for the month-to-date returns and a 12.27-percent gain for the year-to-date returns.

(With input from Xinhua News Agency)