Stocks Rebound After a Day of Wild Selling Worldwide

Investors reclaimed a measure of calm on Tuesday, after a day of frenzied selling around the world over concerns about a potential U.S. recession.

In Japan, where the losses on Monday were largest, stocks bounced higher. The Nikkei 225 index rose 10.2percent after plunging 12.4 percent the day before. That was the benchmark index’s biggest one-day point decline, larger than the plunge during the Black Monday crash in October 1987.

Stocks in South Korea, which were also down more than 10 percent at one point on Monday, regained just over 3percent. In Taiwan, where shares had also declined, stocks turned higher.

Markets across Europe posted small gains in early trading on Tuesday, retracing some of their losses from the day before, which were less severe than in other regions.

Futures trading in the United States pointed to solid gains when markets open.

The sharp jolt to stock markets started last week in Japan, where worries about the state of the U.S. economy were compounded by concerns about the effects a rapidly strengthening yen would have on corporate profits.

On Friday, a report on American jobs showed a considerable slowdown in hiring, prompting a sell-off in U.S. markets. More widespread panic took hold on Monday over fears that the Federal Reserve might have waited too long to start cutting interest rates, threatening the strength of the U.S. economy. On Wall Street, the S&P 500 fell 3 percent, its sharpest daily decline since September 2022.