Wall Street Stocks Close Up After Stormy Session

Wall Street stocks finished solidly higher on Wednesday after a rocky start as investors shifted from fearing an imminent US-China trade war, to resuming a wait-and-see approach.

The Dow Jones Industrial Average finished with a gain of 1.0 percent at 24,264.30, after opening the session more than two percent in the red.

The broad-based S&P 500 gained 1.2 percent to 2,644.69, while the tech-rich Nasdaq Composite Index jumped 1.5 percent to 7,042.11.

US stocks opened sharply lower after China unveiled plans to hit major US exports such as soybeans, cars and small aircraft with retaliatory tariffs, which seemed to portend a worsening tit-for-tat conflict between the world's two biggest economies.

But US equities soon began a gradual climb back towards flat and then eventually finished well above the starting level, led by consumer and technology stocks.

Some analysts pointed to comments by recently-installed White House economic advisor Larry Kudlow who suggested President Donald Trump's strident approach to China was a negotiating tactic to win concessions. (AFP)