S&P 500 and Dow Jones bounce back as FTSE 100 makes further gains
Global markets were in recovery on Tuesday, as the S&P 500 and Dow Jones jumped on open and the FTSE 100 scraped further gains in the afternoon.
The Dow rebounded 1,300 points – a more than three per cent surge.
The S&P 500 and the tech-heavy Nasdaq were each up over three per cent, while Tesla clawed back some gains after rallying over five per cent in early trading.
The stock had taken a bruising since Trump’s ‘Liberation Day’ and company boss Elon Musk has even broke ranks with the President to criticise his trade agenda.
Russ Mould, investment analyst at AJ Bell, said: “The S&P 500’s rally on Monday took it out of bear market territory, but the technology-laden NASDAQ Composite has fallen by 23 per cent from its December zenith, so the situation remains delicately poised, especially as share prices seem to be hanging upon president Trump’s every word on the subject of trade and tariffs.”
‘A glimmer of hope’
Meanwhile, the FTSE 100 climbed over three per cent in the afternoon. The mid-cap FTSE 250 was up nearly four per cent.
Defence stock led London markets’ rebound, with BAE Systems and Rolls-Royce each up over seven per cent.
Across Europe, markets were making gains.
Germany’s Dax was up 2.9 per cent and France’s Cac 40 3.3 per cent. Amsterdam’s AEX jumped 3.5 per cent.
However, Matt Britzman, senior equity analyst at Hargreaves Lansdown, warned: “This should hardly be seen as the end of the trouble, especially with President Trump showing no signs of easing his stance on perceived trade imbalances, having doubled down on China.
“Still, there is a glimmer of hope, as Japanese markets are up nearly six per cent following news that trade talks will begin in a few days.
“The sooner deals are reached, the quicker companies and investors can gain some clarity on the lay of the land.”