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 TSLA.O 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 .DJI rose 66.07 points, or 0.15%, to 42,054.12, the S&P 500 .SPX gained 12.76 points, or 0.22%, to 5,645.68 and the Nasdaq Composite .IXIC gained 76.32 points, or 0.44%, to 17,526.21.

The domestically focused Russell 2000 index <.RUT > 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 .SPX and the tech-heavy Nasdaq .IXIC 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.

(Reporting by Sruthi Shankar and Pranav Kashyap in Bengaluru; Editing by Anil D'Silva and Maju Samuel)

((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))