GLOBAL MARKETS-Stocks recover after tariff-related selloff; US bond yields up a 2nd day

By Caroline Valetkevitch and Dhara Ranasinghe

NEW YORK/LONDON, April 8 (Reuters) - Major stock markets jumped on Tuesday after three days of heavy selling while U.S. Treasury yields rose for a second day as investors were optimistic that Washington might be willing to negotiate on some of its aggressive tariffs.

Technology .SPLRCT led sector gains on the S&P 500, and a semiconductor index .SOX was up sharply.

Oil prices rebounded from recent losses as well.

"This appears to be an oversold rally" in stocks, said Adam Sarhan, chief executive of 50 Park Investments in New York.

"The question is, has anything changed? The tariffs are obviously the driver here ... Any de-escalation on the tariff front would be a welcome sign for investors."

Stocks had fallen sharply following U.S. President Donald Trump's unveiling last Wednesday of sweeping tariffs as worries mounted that a global trade war would push the economy into recession.

Trump said on Tuesday that he is waiting to hear from China before duties of more than 100% take effect, but other administration officials said they would not prioritize negotiations with China.

Trump has already implemented a 10% tariff on almost all imports into the world's largest consumer market, and targeted tariffs of up to 50% on many trading partners are due to take effect on Wednesday.

Trump said Japan is sending a team to negotiate on trade. His decision to impose a 25% levy on auto imports, and a reciprocal 24% tariff on other Japanese goods, is expected to deal a huge blow to Japan's export-heavy economy.

The Dow Jones Industrial Average .DJI rose 820.50 points, or 2.16%, to 38,786.10, the S&P 500 .SPX rose 101.39 points, or 2.00%, to 5,163.64 and the Nasdaq Composite .IXIC rose 322.41 points, or 2.07%, to 15,925.67.

EARNINGS SEASON STARTS

Investors are looking ahead to the start of U.S. quarterly earnings reports this week. Sarhan said upbeat results could potentially be a catalyst to lift stocks further.

JPMorgan Chase JPM.N, Citigroup C.N and Wells Fargo WFC.N will kick off results on Friday. JPMorgan's CEO Jamie Dimon has warned that trade wars could have lasting negative consequences, including inflation and recession.

MSCI's gauge of stocks across the globe .MIWD00000PUS rose 15.69 points, or 2.10%, to 761.17. The pan-European STOXX 600 .STOXX index rose 2.72%.

Japan's blue-chip Nikkei stock index .N225 closed 6% higher.

U.S. Treasury yields jumped for the second day on greater optimism that Trump will strike deals with trading partners, while the dollar, which has taken a beating from the tariff turmoil, remained weak against other major currencies.

The yield on benchmark U.S. 10-year notes US10YT=RR rose 3.8 basis points to 4.195%, from 4.157% late on Monday.

Interest-rate sensitive two-year yields US2YT=RR rose 4.1 basis points to 3.779%. They had reached 3.435% on Monday, the lowest since September 2022.

The dollar index =USD, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.12% to 103.31, with the euro EUR= up 0.02% at $1.0906. Against the Japanese yen JPY=, the dollar weakened 0.58% to 146.98.

The heightened uncertainty in markets wasn't helped by shifting headlines on trade as investors looked for respite from the sharp market volatility.

Beijing said on Tuesday it will never accept what it called the "blackmail nature" of U.S. tariff threats.

The dollar CNH= strengthened 0.62% to 7.390 versus the offshore Chinese yuan.

U.S. crude CLc1 rose 0.51% to $61.01 a barrel and Brent LCOc1 rose to $64.27 per barrel, up 0.16% on the day.