Stocks are rising on Wall Street and around the world to recover some of the historic losses since last week when President Donald Trump announced sharp increases in taxes on goods imported to the US.
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The S&P 500 was up 3.4% in early US trading on Tuesday while the Dow Jones Industrial Average climbed 1,230 points, or 3.3%. The tech-heavy Nasdaq composite was also higher, up 3.6%.
However, market watchers say more big swings up and down are likely as the tariff conflict continues to plays out.
Global markets rebound
Tuesday's global rebound followed a wild day on Wall Street, where stocks careened after Trump threatened to crank his double-digit tariffs higher.
Among the early gainers was Levi Strauss, which climbed more than 10% after beating analysts' profit targets and forecasting a strong 2025, despite the ongoing trade war and tariff threats.
CVS Health climbed more than 8% after the drugstore chain named a new chief financial officer, effective later this month.
Shares of health insurers like Humana, United Health and Elevance rose sharply after the Centers for Medicare & Medicaid Services announced a 5.06% increase in Medicare payments for next year, which was stronger than expected. Humana, a company with a market capitalisation of more than $30 billion, jumped nearly 15%.
The week ahead
Corporate earnings season kicks off this week with Delta Air Lines reporting on Wednesday and major US banks offering up their latest results on Friday. The airline sector, which had been forecasting a strong 2025, has been one of the hardest hit during Trump's tariff rollout.
Banks report their latest quarterly earnings on Friday, but most of the attention likely will be on their forecasts amid the rising global trade tensions ignited by Trump's tariffs.
On Thursday, the government posts its latest inflation data, which could play into the Federal Reserve's next interest rate decision. Many economists have raised their odds of a US recession because of the tariffs and suggest the Fed may have to step in and cut rates to help spur economic growth.
