Stock futures bounced back on Tuesday, a day after U.S. recession fears triggered a global market sell-off that led Wall Street to experience its worst day since 2022.
Dow Jones Industrial Average futures rose more than 200 points. Nasdaq Composite and S&P 500 futures climbed 0.81% and 0.84%, respectively.
Stocks closed the prior session broadly lower, with the Dow shedding 1,033.99 points, or 2.6%, while the Nasdaq Composite and S&P 500 fell 3.43% and 3%, respectively. The Dow and S&P 500 closed out their worst day since September 2022.
A weak jobs report and shrinking manufacturing activity in the world's largest economy, coupled with dismal forecasts from the big technology firms, pushed the Nasdaq 100 and Nasdaq Composite into a correction last week.
"While Friday’s employment report was disappointing, it wasn’t the only worrisome economic indicator, only the latest," said Greg McBride, Bankrate's chief financial analyst. "Couple economic concerns with the cacophony of earnings disappointments and weak corporate outlooks, global unrest, and currency gyrations, and you have the recipe for sudden volatility."
Japanese stocks rebounded on Tuesday, with the Nikkei 225 closing 10.23% higher. The index on Monday suffered its worst day since the 1987 Black Monday crash, falling 12%.
Employees look on the monitors displaying Japan's Nikkei share average at Nagoya Stock Exchange in Nagoya, Japan, on Aug. 5, 2024. (Kyodo/via REUTERS / Reuters)
In Europe, the Stoxx 600 climbed 0.21% on Tuesday, while the U.K.'s FTSE 100 and Germany's DAX indexes also posted gains.