Global Stocks Drop as Investor Relief Falters

Global stocks retreated on Tuesday, surrendering earlier gains, as the uncertainty generated by the previous day’s aggressive selloff weighed on investor sentiment.

The Nikkei’s 10% rebound in Tokyo overnight delivered an initial sense of relief after the index’s 12.4% drop on Monday – its biggest daily sell-off since the 1987 Black Monday crash.

European markets opened firmer, while U.S. stock futures pointed to a modest rise at the opening bell later on.

But those gains proved fleeting, leaving the pan-European STOXX 600 index (.STOXX), down 0.3% on the day and most major indices in the red by mid-morning in the region.

S&P 500 futures were up by just 0.3%, having risen earlier by as much as 1.7%, while Nasdaq futures were up 0.2%, having gained as much as 2.4%.

The S&P 500 (.SPX), lost 3% on Monday, while the Nasdaq (.IXIC), slumped 3.43%, extending a recent sell-off as fears of a possible U.S. recession scared global markets.

Yields on 10-year Treasury notes were back at 3.84%, having been as low as 3.667% at one stage