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US: Stocks open higher, rebounding from Monday rout

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Wall Street stocks rose early Tuesday, winning back a fraction of the losses suffered in a broad sell-off in the prior session caused by fears over the escalating US-China trade war.

[NEW YORK] Wall Street stocks rose early Tuesday, winning back a fraction of the losses suffered in a broad sell-off in the prior session caused by fears over the escalating US-China trade war.

About 10 minutes into trading, the Dow Jones Industrial Average stood at 25,441.48, up 0.5 per cent.

The broad-based S&P 500 gained 0.6 per cent to 2,827.43, while the tech-rich Nasdaq Composite Index advanced 0.7 per cent to 7,699.62.

Major US indices lost more than two per cent on Monday after China announced retaliatory tariff measures on the US following Washington's move last week to more than double the punitive tariffs already in place.

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Analysts said the market was taking solace in President Donald Trump's statement that he expected to meet next month with his Chinese counterpart Xi Jinping at a Group of 20 summit in Japan.

The solid start to Tuesday's trading session raises "the question of whether the early strength will be sold into or sustained," said Briefing.com analyst Patrick O'Hare.

"That will be monitored closely by market participants who recognise the market has shown a great propensity to bounce back every time it has moved noticeably lower."

AFP