Stocks rise on Wall Street after historic losses sparked by Trump's tariffs

Stocks are rising on Wall Street and around the world to recover some of the historic losses since last week when President Donald Trump announced sharp increases in taxes on goods imported to the US.

The S&P 500 was up 3.4 per cent in early trading on Tuesday after Australia's ASX200 closed the day down 4.2 per cent at 7343.3, a loss of almost $100 billion.

The Dow Jones Industrial Average was up 1230 points, or 3.3 per cent, and the Nasdaq composite was 3.6 per cent higher.

Overseas markets also rose sharply, and the price of US crude oil rose a bit after touching its lowest level in four years.

Market watchers say more big swings up and down are likely as the tariff conflict plays out.

World shares advanced on Tuesday, led by gains in Tokyo where the Nikkei 225 shot up just over 6 per cent as markets settled after the shocks from Trump's tariff hikes.

Japan's Nikkei newspaper reported on Tuesday that US Treasury Secretary Scott Bessent would lead trade negotiations with the country.

Such negotiations are typically led by trade representatives, the Nikkei reported citing unnamed sources, hinting that currency imbalances may also be part of the reported talks.

Tuesday's rebound followed a wild day on Wall Street, where stocks careened after Trump threatened to crank his double-digit tariffs higher.

On Tuesday, China's Commerce Ministry said it would "fight to the end" and take unspecified countermeasures against the United States after Trump threatened another 50 per cent tariff on Chinese imports.

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