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Indexes up: Dow 0.2%, S&P 500 0.2%, Nasdaq 0.4%

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Trump's tariff announcement at 4:00 p.m. ET

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ADP, factory orders beat estimates

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Tesla turns higher after reports Musk to leave govt role

(Updates with midday trading prices)

By Sruthi Shankar and Pranav Kashyap

April 2 (Reuters) -

U.S. stock indexes recovered from morning losses to trade

modestly higher on Wednesday as investors awaited U.S. President

Donald Trump's sweeping tariff announcements.

Volatility has gripped U.S. markets in recent weeks as

investors speculate about the scope of tariffs and their impact

on the global economy, inflation and corporate earnings.

Trump has kept the world guessing on the details of the

tariff plans, which were still being formulated ahead of a White

House Rose Garden announcement ceremony scheduled for 4 p.m. ET

(2000 GMT).

The president has said that his reciprocal tariffs aim

to equalize the comparatively lower U.S. tariff rates with those

imposed by other nations. But the format of the duties was

unclear, with reports that Trump was considering a 20% universal

tariff.

"You're seeing a market that is beginning to slowly

rally. That is a read that the news may be more positive than

expected," said Eric Schiffer, chief executive officer of the

Patriarch Organization.

"We'll have continued volatility in the medium term. It

will be about how trade partners decide to counter and what the

impact of all this is on supply chains and profits."

Tesla

jumped 3%, reversing earlier declines after

Politico reported that Trump has told members of his Cabinet and

other close contacts that his billionaire ally Elon Musk will

soon step back from his government role.

The stock fell as much as 6.4% earlier after the EV

maker reported a 13% drop in first-quarter

deliveries

.

At 11:58 a.m. ET, the Dow Jones Industrial Average

rose 66.07 points, or 0.15%, to 42,054.12, the S&P 500

gained 12.76 points, or 0.22%, to 5,645.68 and the Nasdaq

Composite gained 76.32 points, or 0.44%, to 17,526.21.

The domestically focused Russell 2000 index recouped earlier losses to climb 0.8%.

U.S. stocks have come under sharp selling pressure this year

due to uncertainty around tariffs and concerns about aggressive

AI spending by tech firms. The benchmark S&P 500 and the

tech-heavy Nasdaq fell 10% from their record highs last

month, confirming a correction.

The S&P 500 shed 4.6% in the first quarter, its biggest

three-month decline since July 2022.

On the data front, U.S. private payrolls growth

accelerated in March and new orders for U.S.-manufactured goods

increased solidly in February, likely as businesses front-loaded

orders ahead of tariffs.

Focus, however, is on the crucial monthly non-farm payrolls

data as well as Federal Reserve Chair Jerome Powell's speech on

Friday for insights into the health of the U.S. economy and

trajectory of interest rates.

Traders are betting on three rate cuts from the Fed this

year but the prospect of tariff-induced inflationary pressures

has clouded the outlook.

Advancing issues outnumbered decliners by a 1.36-to-1 ratio

on the NYSE and by a 1.52-to-1 ratio on the Nasdaq.

The S&P 500 posted 14 new 52-week highs and 10 new lows,

while the Nasdaq Composite recorded 18 new highs and 244 new

lows.