By Adrian Black

An Australian share market rally has led to its biggest daily gain of 2025, but the recovery could be short-lived as trade war uncertainty weighs on confidence.

As markets closed the S&P/ASX200 was up 151.4 points, or 2.06 per cent, to 7494.7, while the broader All Ordinaries rose 165.2 points, or 2.20 per cent, to 7689.5.

All 11 sectors finished in the green, led by a 4.8 per cent rally in IT stocks, as the energy sector lifted 3.5 per cent while materials gained 2.1 per cent and financials recovered 1.7 per cent.

The Australian dollar also rebounded after tanking against major currencies to buy 60.67 US cents, up from 60.14 US cents on Monday at 5pm.

The Aussie has sold off more than any other major currency since US President Donald Trump’s “Liberation Day” tariffs were announced on Wednesday.