New York, Apr 14 (AP) Stocks are rallying worldwide Monday after President Donald Trump relaxed some of his tariffs, for now at least.

The S&P 500 was 1.5 per cent higher in early trading. It's coming off a chaotic week where it careened through historic swings as financial markets struggled to catch up with Trump's moves on tariffs, which investors fear could lead to a recession if not reduced.

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The Dow Jones Industrial Average was up 441 points, or 1.1 per cent, as of 9.35 am Eastern time, and the Nasdaq composite was 2 per cent higher.

Apple, Nvidia and other big technology companies led the way on Wall Street after Trump said he was exempting smartphones, computers and some other electronics from some of his stiff tariffs, which could ultimately more than double prices for US customers of many goods coming from China.

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Such an exemption should help US importers, which would not have to choose between passing on the higher costs to their customers or taking a hit to their own profits.

Apple climbed 5.3 per cent, Nvidia rose 2.3 per cent, Dell Technologies jumped 5.9 per cent.

Stock markets in other countries likewise bounced following the cooldown in Trump's trade war with China, the world's second-largest economy. Indexes climbed 2.4 per cent in France, 2.7 per cent in Germany, 1.2 per cent in Japan and 1 per cent in South Korea.

But the relief may prove fleeting. Trump's tariff rollout broadly has been full of fits and starts, and officials in his administration said this most recent exemption on electronics is only temporary.

China's commerce ministry nevertheless welcomed the change in a Sunday statement as a small step even as it called for the US to completely cancel the rest of its tariffs. China's leader Xi Jinping on Monday said no one wins in a trade war as he kicked off a diplomatic tour of Southeast Asia, hoping to present China as a force for stability in contrast with Trump's frenetic moves on tariffs.

Elsewhere on Wall Street, Goldman Sachs rose 2.7 per cent after reporting a stronger profit for the latest quarter than expected. It joined other big banks in doing so, such as JPMorgan Chase and Morgan Stanley.

Perhaps more encouragingly for Wall Street, the bond market was also showing signals of increasing calm. Treasury yields eased a bit following their sudden and scary rise last week, which seemed to rattle not only investors but also Trump himself.

Treasury yields usually drop when fear is high in the market because US government bonds have historically been seen as some of the world's safest investments, if not the safest. But last week, yields rose unusually sharply for Treasury bonds.

The value of the US dollar also fell against other currencies in another move suggesting investors may no longer see the United States as the best place to keep their cash during moments of stress.

Trump noted the moves in the bond market, which showed investors “were getting a little queasy,” when he announced a 90-day pause on many of his tariffs last week.

The yield on the 10-year Treasury eased back to 4.40 per cent. It had jumped to 4.48 per cent on Friday from 4.01 per cent the week before.

In China, stock indexes rose 2.4 per cent in Hong Kong and 0.8 per cent in Shanghai after the government reported that China's exports surged 12.4 per cent in March from a year earlier in a last-minute flurry of activity as companies rushed to beat increases in US tariffs imposed by Trump. (AP)

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