US STOCKS-Wall St advances as Trump's tariffs lift U.S. steelmakers

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By Shashwat Chauhan and Sukriti Gupta

Feb 10 (Reuters) - Wall Street's main indexes moved higher on Monday, recovering from last week's declines, as U.S. steelmakers surged after President Donald Trump said he would impose additional tariffs on steel and aluminum imports.

Trump's latest trade escalation came on Sunday when he said he would introduce 25% tariffs on all imports of steel and aluminum into the United States, on top of existing duties on the metals.

U.S. Steel X.N gained 3.3% after Japan's Chief Cabinet Secretary said Nippon Steel 5401.T was considering proposing a bold change in its plan to buy the company.

Shares of other steelmakers also soared, with Cleveland-Cliffs CLF.N adding 13.2%, and Nucor NUE.N gaining 7.3%. Aluminum producer Alcoa AA.N was up 3.2%.

Trump also said on Sunday he would announce reciprocal tariffs on all countries on Tuesday or Wednesday, effective almost immediately, matching the tariffs levied by each country.

"We're certainly in an unmarked territory. It's not every day that an administration is so decisive with its executive powers as to take so much action altogether," said Giuseppe Sette, president of market research firm Reflexivity.

At 09:52 a.m. ET, the Dow Jones Industrial Average .DJI rose 111.28 points, or 0.26%, to 44,414.68, the S&P 500 .SPX gained 23.60 points, or 0.39%, to 6,049.59 and the Nasdaq Composite .IXIC gained 145.65 points, or 0.75%, to 19,669.05.

Five of the 11 S&P 500 sectors traded higher, with energy stocks .SPNY leading the gains with a 1.6% rise, while technology companies .SPLRCT added 1.3%.

Nvidia NVDA.O climbed 3.5%, while Apple AAPL.O and Microsoft MSFT.O rose about 1%.

A gauge of semiconductor stocks .SOX rose 1.3%.

All three major indexes had dropped about 1% each in the last session, recording weekly losses after Trump had initially revealed his reciprocal tariff plans.

Expectations for the Fed's rate cuts to stay on hold in March solidified after Friday's mixed U.S. employment report. A year-on-year 4.0% unemployment rate would probably give the central bank cover to hold off cutting interest rates at least until June.

U.S. Federal Reserve Chair Jerome Powell is due to testify before Congress on Tuesday and Wednesday. The January consumer price index reading is expected to be released in the early hours of Wednesday, before Powell's testimony the same day.

McDonald's MCD.N on Monday posted a bigger-than-expected drop in the U.S. comparable sales in the fourth quarter. However, its global comparable sales posted a surprise rise. Shares of the fast food chain were up 4.9%.

Rockwell Automation ROK.N advanced 9.6% after the automation products maker posted a higher-than-expected profit for the first quarter.

Among other movers, T-Mobile TMUS.O gained 2.2% after the wireless carrier said it will launch its satellite-to-cell service, powered by SpaceX's Starlink, in July for $15 a month.

Advancing issues outnumbered decliners by a 1.87-to-1 ratio on the NYSE, and by a 1.3-to-1 ratio on the Nasdaq.

The S&P 500 posted six new 52-week highs and 12 new lows, while the Nasdaq Composite recorded 51 new highs and 94 new lows.