Stock Market Chaos Appears to Cool Off

The US stock market's steep plunge on Monday does not appear to be carrying over into Tuesday, at least for the moment. World markets also rebounded:

• In the US: Futures for the American market were rising modestly a few hours ahead of trading—Dow futures were up 0.3%, S&P 500 futures were up 0.6%, and Nasdaq futures were up 0.5%, reports the Wall Street Journal. On Monday, growing fears of a US recession resulted in the worst day for markets since 2022, with the Dow falling more than 1,000 points.

• Japan: Nowhere is the uncertainty more apparent than in Japan. The benchmark Nikkei 225 index gained 10% on Tuesday for its best day since 2008, reports CNBC. However, that massive jump wasn't enough to claw back all of Monday's 12% loss. The Bank of Japan's decision to raise rates last week and the resultant effect on the yen factored into the volatility. Elsewhere in Asia, South Korea's main market gained 3% on Tuesday.
• Europe: Major European indexes rallied initially Monday but were largely back to where they started in later trading.
• Volatility: The closely watched Cboe Volatility Index for US stocks surged to over 60 at one point Monday but has since fallen back to 33, per the Journal.
• One view: "It's too early to say the low is in," wrote Truist exec Keith Lerner. "There has been damage done, and the repair process will likely take time. However, the risk/reward appears to be gradually improving as the market's bar for positive surprises resets lower."

(More global economy stories.)