U.S. stocks rebound after sharp drop

Japanese stocks surged on Tuesday, recovering most of their losses after yesterday’s global stock market slump caused by weaker-than-expected U.S. economic data. U.S. stocks are rebounding. Yesterday, the Dow Jones Industrial Average fell more than 1,000 points, the S&P 500 closed down 3%, the Dow Jones Industrial Average fell 1,034 points (2.6%), and the Nasdaq Composite fell 3.8%. Japan’s Nikkei 225 Index fell even more, 12.4%, the worst since the Black Monday stock market crash in 1987. As of 11 a.m. Eastern Time on Tuesday, the S&P 500 rebounded 1.6%, the Dow Jones Industrial Average rose 480 points (1.2%), and the Nasdaq Composite rose 1.7%. The Toronto Stock Exchange fell 1.65% when it opened at noon on Tuesday. Canada was closed on Monday for a bank holiday and closed down 2.1% on Friday, the biggest single-day drop since mid-February. Canadian stocks did not fall yesterday because the market was closed and are currently adjusting. Experts pointed out that in addition to the weak U.S. recruitment data and other reports, some technical factors also caused the market to fluctuate sharply. Analysts at Barclays Bank said that one of the factors came from the Bank of Japan’s interest rate hike last week. The interest rate hike made borrowing more expensive, so hedge funds and other investors’ favorite trading method, that is, borrowing yen at low cost and reinvesting it elsewhere in the world, was hit. Japan’s Nikkei 225 index rose 10.2% on Tuesday, recovering the 12.4% drop the day before. Although the stock market rebounded, there are still voices on Wall Street calling for caution, saying that the U.S. economy is slowing down and inflation is continuing, and there may be more declines in the future. The market decline is not a flash in the pan. The outside world is generally worried about the performance of the U.S. economy, but in fact the U.S. economy is still growing. The S&P 500 has set dozens of record highs this year, partly due to the craze around artificial intelligence technology. Elsewhere, European markets were mostly unaffected by the rebound, and stock indices in Britain, France and Germany fell only slightly.