U.S. stock futures rose on Tuesday, offering a glimmer of recovery after several days of heavy losses that had pushed the Nasdaq into bear market territory and sent the S&P 500 to an 11-month low. The positive shift in sentiment was largely attributed to hopes for diplomatic engagement between the U.S. and key Asian trade partners, as well as strong corporate announcements from major companies.
Tech stocks led the bounceback, with Tesla, Amazon, Meta, and Nvidia each climbing nearly 2% in premarket trading. Futures for the Dow Jones Industrial Average, the S&P 500, and the Nasdaq all showed gains between 0.9% and 1.7%. The gains followed a period of intense volatility, where investor concerns about global trade restrictions and rising inflation had fueled expectations for multiple interest rate cuts by the Federal Reserve before the end of the year.
In the bond market, Treasury yields edged lower, providing further support to equities. The CBOE Volatility Index, a key measure of market fear, also retreated after reaching some of its highest levels in recent years.
Among corporate movers, semiconductor giant Broadcom announced a $10 billion share buyback plan, lifting its shares by over 3%. Marvell Technology also saw a nearly 3% boost after it revealed the sale of its automotive ethernet business. Health insurance stocks rallied, led by UnitedHealth Group, which jumped nearly 6% after Medicare announced a higher payment rate. Other major insurers, including Humana and CVS Health, also posted gains.
The global market mood was lifted further by developments in Asia. Japan’s Nikkei index surged 5.6%, reversing earlier losses and offering some stability to regional markets. This recovery came amid speculation that U.S. officials may be open to new trade discussions with Tokyo and other partners.
In Taiwan, Foreign Minister Lin Chia-lung indicated readiness for talks with Washington, following recent increases in duties on Taiwanese goods. Lin proposed a new agreement that could include a zero-duty arrangement and enhanced bilateral trade cooperation, signaling a willingness to de-escalate tensions.
Despite the day’s recovery, analysts cautioned that market volatility remains elevated. The S&P 500 recently fell below the 5,000 mark for the first time in nearly a year and recorded its steepest four-day loss since the index’s inception. The broader economic outlook continues to be influenced by shifting global trade policies and investor uncertainty about monetary strategy moving forward.
As global markets watch for signs of meaningful negotiation and stabilization, investors are treading cautiously, balancing hope for recovery with the realities of ongoing geopolitical and economic challenges.