New York. Stocks surged Tuesday as global markets rebounded from last week’s steep selloffs triggered by President Donald Trump’s sudden hike in tariffs on imported goods. The S&P 500 rose 3.4 percent in early trading, while the Dow Jones Industrial Average climbed 1,230 points, or 3.3 percent. The Nasdaq composite was up 3.6 percent, buoyed by broad gains across sectors.

Markets overseas also rallied. Japan’s Nikkei 225 led with a 6 percent jump, supported by optimism that new trade negotiations with the US might ease tensions. The Nikkei newspaper reported that US Treasury Secretary Scott Bessent would lead talks with Japan, suggesting a focus on currency issues in addition to trade.

US futures had pointed to gains before the opening bell, with S&P 500 futures up 1.7 percent, Dow futures up 2.1 percent, and Nasdaq futures rising 1.5 percent. The recovery came after a volatile Monday session in which stocks whipsawed on fears of escalating tariffs, including Trump’s threat to increase levies on Chinese imports by 50 percent.

China’s Commerce Ministry responded Tuesday, vowing to “fight to the end” and promising unspecified countermeasures. Still, investors appeared hopeful that talks might stave off further economic fallout.

Corporate news added to the bullish sentiment. Levi Strauss shares jumped over 10 percent after the company beat earnings expectations and issued a strong forecast for 2025. CVS Health gained more than 8 percent after naming a new chief financial officer. Health insurers also rallied following the Centers for Medicare & Medicaid Services’ announcement of a 5.06 percent increase in Medicare payments for 2025. Humana shares soared nearly 15 percent, with UnitedHealth and Elevance also notching strong gains.

The airline sector, previously battered by tariff uncertainty, looks to earnings reports later this week for direction. Delta Air Lines kicks off the reporting season on Wednesday, followed by major US banks on Friday. Analysts will closely watch forward guidance as firms grapple with global trade turbulence.

The government’s inflation data, due Thursday, could influence the Federal Reserve’s next interest rate move. Some economists now see a growing risk of recession, increasing the odds of a rate cut aimed at supporting economic growth.

Global indexes also saw strong rebounds. Germany’s DAX rose 1.9 percent, France’s CAC 40 climbed 1.7 percent, and Britain’s FTSE 100 gained 2.5 percent. In Asia, Hong Kong’s Hang Seng recovered 1 percent after plunging 13.2 percent on Monday—its worst drop since the 1997 financial crisis. China’s Shanghai Composite added 1.4 percent, boosted by state-backed share purchases. South Korea’s Kospi rose 0.3 percent, and Australia’s S&P/ASX 200 gained 2.3 percent.

However, markets in Thailand and Indonesia stumbled after reopening from holidays. Jakarta’s exchange briefly halted trading as the JSX fell more than 9 percent before trimming losses to 7.6 percent. Thailand’s SET dropped 4.2 percent, while Taiwan’s Taiex fell 4 percent, dragged down by a 3.8 percent decline in Taiwan Semiconductor.

Oil prices steadied after Monday’s slump. US crude edged up 18 cents to $60.88 per barrel, and Brent crude gained 17 cents to $64.38. Gold jumped $53 to $3,027 an ounce, and Bitcoin bounced 6 percent to $79,550 after dipping below $79,000 on Monday.