Global stocks surged on Tuesday, partially recovering from the previous day’s steep declines. The Nikkei soared over 10% to surpass 34,500, rebounding sharply from Monday’s close of 31,458. This follows its largest daily drop since the 1987 Black Monday crash, where it plummeted 12.4%. Wall Street showed signs of stability, with S&P 500 futures up 1% and Nasdaq futures rising 1.4%. Europe’s STOXX 600 index edged up 0.7% after Monday’s 2.2% drop.
On Monday, the S&P 500 lost 3%, and the Nasdaq fell 3.43% amid recession fears. Yields on 10-year Treasury notes recovered to 3.84%, having dipped to 3.667% earlier.
IG strategist Chris Beauchamp noted the initial shock of Japan’s decline but suggested the sell-off could be a reset for markets. Federal Reserve officials, including San Francisco Fed President Mary Daly, reassured markets, emphasizing the importance of preventing a labor market downturn and being open to rate cuts if necessary.