Trump last week pushed on with imposing the tariffs — 25 percent on steel and 10 percent on aluminum — on Canada, the EU and Mexico, with Mexico retaliating by putting tariffs on American products ranging from steel to pork and bourbon.
The benchmark U.S. Treasury yield rose to a near two-week high after data showed that U.S. trade deficit unexpectedly fell to a seven-month low in April, supporting the view of an acceleration of domestic economic growth in the second quarter.
Bank stocks often trade in line with Treasury yields, as higher rates can boost their profits. The S&P banking index was up 1.8 percent.
At 11:56 a.m. EDT the Dow Jones Industrial Average was up 199.27 points, or 0.80 percent, at 24,999.25, the S&P 500 was up 10.50 points, or 0.38 percent, at 2,759.30 and the Nasdaq Composite was up 17.86 points, or 0.23 percent, at 7,655.72.
Advancing issues outnumbered decliners for a 1.12-to-1 ratio on the NYSE; for a 1.39-to-1 ratio on the Nasdaq.
The S&P index recorded 45 new 52-week highs and 10 new lows, while the Nasdaq recorded 214 new highs and 14 new lows.
(Reporting by Medha Singh in Bengaluru; Editing by Shounak Dasgupta)