Wall Street recovers from black Monday’s rout

The news: Stocks on Wall Street showed recovered on Tuesday in a volatile session following Monday’s global market rout. The S&P 500 gained 2%, partly recovering from its 3% fall on Monday—the largest drop since 2022.

The numbers: The Dow Jones rose 1.5% and the Nasdaq Composite was 2.2% higher. Japan’s Nikkei 225 also reversed some of the previous day’s losses, surging 10% but remaining below pre-Monday levels following its largest drop since 1987’s Black Monday.

Nvidia shares gained 5.8% after analysts shrugged off reports that deliveries of its Blackwell AI chips could be delayed by three months, stressing the company’s long term prospects remained sound. Apple shares were slightly lower. The Cboe Volatility Index, a measure of market fear, fell to between 24 and 34, down from the above 60 level it reached the previous day. European stock indices showed little movement. Data-analytics company Palantir Technologies, ride-hailing company Uber, and Kenvue, the former consumer health division of Johnson & Johnson, saw gains after earnings reports.

The context: Bargain hunting and supportive comments from Federal Reserve officials dispelling fear of a recession helped.