U.S. stock futures were climbing and Asian markets recovered strongly after a sharp global sell off Monday.
The Nikkei Stock Average in Tokyo closed 10.2% higher on Tuesday, a day after suffering its worst one-day drop since the crash after Black Monday in 1987. Losses were spread around the world Monday, with the S&P 500 logging its worst day since 2022.
Investors have been unwinding the year’s most popular trades in recent days, including a sell off in tech shares. Those moves have accelerated after recent data ignited worries about the U.S. economy. On Monday, the Magnificent Seven was hit especially hard , with the group of tech titans losing more than $650 billion in market value.
Here’s what to know as Tuesday trading nears a close in Asia and Europe’s day starts:
Futures tied to the S&P 500 were up 1.5%. The broad index fell 3% Monday, while the Dow Jones Industrial Average fell 1,034 points and the Nasdaq dropped 3.4%.
In Asia, the Nikkei Stock Average closed up 10.2% in afternoon trading, while South Korea’s Kospi index is up nearly 4%, partly reversing their declines on Monday .
The yen, a big driver of market movements in recent days, is giving back some gains, trading at 146 to the dollar compared with 142 to the dollar at its strongest point Monday.
