Following a sharp decline over the past three trading sessions, Wall Street investors were searching for any opportunity to stabilize ahead of another tariff increase set for midnight. US stocks opened higher on Tuesday, with the Dow rising by 1,360 points (3.6%), the S&P 500 gaining 3.4%, and the tech-heavy Nasdaq Composite increasing by 3.76%. The recent market turmoil was driven by fears that President Donald Trump’s tariff policies might lead to a global recession. However, after several days of declines, investors began seeking buying opportunities. The price-to-earnings ratio of S&P 500 companies closed below 17 on Monday, historically considered a bargain. Keith Lerner of Truist noted that markets don’t move linearly and that rebounds often follow significant declines. Despite this rebound, there’s no guarantee that stocks will remain stable. The escalating trade war between the US and China continues, with both nations standing firm. A prolonged trade war could harm both economies and lead to a global recession, as warned by multiple Wall Street banks. — new from CNN
