President Trump has instructed the Commerce Department to help China's ZTE, which is a "good" sign for investors who have been worried about a trade war between the two nations.
"It shows some kind of discussion is going on at a higher level," said Matthew Cheslock, an equity trader with Virtu Financial based on the floor of the New York Stock Exchange. "You saw today that Qualcomm (QCOM) and NXP Semiconductors (NXPI) have now said that they are going to [reenter talks] about what that merger could be."
China had reportedly stopped looking into the merger of the two chipmakers given the tariff uncertainty between China and the U.S, according to Bloomberg.
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