NEW YORK (AP) — Japan’s benchmark Nikkei 225 index soared nearly 11% early Tuesday, a day after it set markets tumbling in Europe and on Wall Street. Other markets in Asia also rebounded, but more moderately, appearing to settle somewhat after the rollercoaster ride that started the week.
The scary Monday started with a plunge abroad reminiscent of 1987 ’s crash that swept around the world and pummeled Wall Street with more steep losses, as fears worsened about a slowing U.S. economy.
The Nikkei gained nearly 11% early Tuesday and was trading 10.3% higher by early afternoon as investors bought into bargains after the 12.4% rout of the day before.
On Monday, the S&P 500 dropped 3% for its worst day in nearly two years, closing at 5,186.33. The Dow Jones Industrial Average reeled by 1,033 points, or 2.6%, to 38,703.27, while the Nasdaq composite slid 3.4% to 16,200.08 as Apple, Nvidia and other Big Tech companies that used to be the stars of the stock market continued to wilt.
The drops were the latest in a global sell-off that began last week, and it was the first chance for traders in Tokyo to react to Friday’s report showing U.S. employers slowed their hiring last month by much more than economists expected. That was the latest piece of data on the U.S. economy to come in weaker than expected, and it’s all raised fear the Federal Reserve has pressed the brakes on the U.S. economy by too much for too long through high interest rates in hopes of stifling inflation.