A measure of calm returned to global markets on Tuesday, as stocks staged a modest recovery from the panic that had overtaken investors to start the week.

       On Wall Street, the S&P 500 rose 1 percent, after falling 3 percent on Monday, which was its sharpest daily decline since September 2022. Tuesday’s trading — a rally that lost steam late in the session — marked a break in a three-day retreat for stocks, and came after two weeks of turbulence across financial markets.

       Investors are grappling with a number of changing dynamics in the global economy: A steep rise in the yen recently had upended some popular trades, while a weaker-than-expected U.S. jobs report sparked fears of a slowing American economy. Meanwhile, concern about whether artificial intelligence would keep driving big gains for tech companies weighed on an important sector of the market.

       “The statistics from yesterday’s sell-off had the feel of the ‘sell now, ask questions later’ kind of day where everything and anything is piling on to reasons for selling,” said Quincy Krosby, chief global strategist at LPL Financial, an investment adviser. “Today, the market by any metric is ‘oversold’ and due for a bounce.”

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       The tech-heavy Nasdaq mirrored gains in the S&P 500, rising 1 percent. Crude oil prices inched higher, too.

       In Japan, where the losses on Monday were largest, stocks bounced higher. The Nikkei 225 index rose 10.2 percent 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.

       Daily close value of Nikkei 225

       Source: FactSet

       By The New York Times

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