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After three days of severe decline, the US stock markets saw a tremendous jump on Tuesday. Investors have got some relief after the turmoil caused by the new tariffs imposed by President Donald Trump.
How much did the market grow? Dow Jones Futures rose by 1,136 points or about 3%. S&P 500 Futures were up by about 2.7%. Nasdaq-100 Futures also saw a gain of 2.6%.
In the last 3 days:- Dow saw a decline of 1,700 points in a day. The markets witnessed the highest trading volume (29 billion shares) in 18 years. S&P 500 also went into Bear Market (20% decline) for a while on Monday. What did the US Finance Minister say- US Treasury Secretary Scott Bessant says that China has made a big mistake by increasing tariffs. About 70 countries have contacted the US for tariff talks. If countries come up with the right proposals, some good trade agreements can be reached. He also indicated that even if some tariffs are removed, some tariffs may remain. Why is the market booming? Market experts say that a technical bounce was certain after Monday's massive fall. The CBOE Volatility Index (VIX) reached 60 on Monday, which indicates that fear in the market was at its peak and now a bounce was natural. Mild buying was seen in the shares of many tech companies: - Nvidia and Amazon shares rose 2%. Apple shares gained 1%. What will be the way forward? According to expert David Morrison, if clarity is not received from the White House soon, fear may increase in the market again. If investors feel that the government is losing control, then there may be a big sell-off in the market again. China has also made it clear that it is ready to 'fight till the end', which may deepen the tariff war. Overall - after three days of decline, the markets have breathed a sigh of relief on Tuesday. But until there is clarity on the US-China tariff dispute, volatility may remain in the market.
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