S&P 500 futures rose slightly on Tuesday after the broad index notched its worst day in nearly two years as global markets sold off. Futures tied to the S&P 500 were up around 0.4%, while Nasdaq 100 futures gained 0.5%. Futures connected to the Dow Jones Industrial Average advanced 153 points, or about 0.4%. Helping sentiment was a rebound in Japanese stocks. The Nikkei 225 posted its best day since October 2008, soaring 10.2%. That surge comes a day after the benchmark suffered its worst day since 1987, losing 12.4%. The moves follow a sharp sell-off during Monday trading amid concerns over the state of the economy. The 30-stock Dow dropped 1,033.99 points, or 2.6%, while the S&P 500 slid 3%. Both indexes notched their worst sessions since September 2022. The Nasdaq Composite shed 3.4%, tumbling deeper into a correction. A major unwind in the yen “carry trade” also contributed to the volatility. The Bank of Japan last week raised interest rates, contributing to a rise in the yen. That’s affected the practice of traders borrowing in the cheaper currency to purchase other global assets. “After such a strong rally since last fall, valuations, sentiment and investor positioning had become stretched,” said Quincy Krosby, LPL Financial’s chief global strategist. “What markets are experiencing today is an unwinding of that bullish positioning, which is particularly evident in the yen and the so-called carry trade.” Many investors have come to view Monday’s sell-off as long overdue in a market that’s reached high valuations and new records, with some cautioning that the pain may have more room to run. “It’s too early to say the low is in,” wrote Keith Lerner, Truist’s co-chief investment officer. “There has been damage done, and the repair process will likely take time. However, the risk/reward appears to be gradually improving as the market’s bar for positive surprises resets lower.” Treasury yields bounced back on Tuesday as investors closely monitored a reversal of the previous day’s global market sell-off. The yield on the benchmark 10-year Treasury note traded more than 4 basis points higher at 3.824% at 8:32 a.m. ET. It comes after the yield on the 10-year Treasury note on Monday fell to its lowest level since June 2023. The yield on the 2-year Treasury note traded over 5 basis points higher at 3.932%. Japan’s stocks rebounded sharply on Tuesday after the Nikkei 225 and the Topix dropped over 12% in the previous session. Other Asia-Pacific markets were mostly higher. The Nikkei 225 — which saw its largest loss in the previous session since the 1987 Black Monday crash — as well as the broad-based Topix gained over 9%. The Nikkei ended the day up 10.23% at 34,675.46, hitting its largest daily gain since October 2008 and highest ever spike in terms of index points. The Topix finished up 9.3% at 2,434.21. The rallies in Japan saw both indexes climb back into positive territories for the year so far. South Korea’s Kospi jumped 3.3% to end the day at 2,522.15, while the small-cap Kosdaq rose 6.02% to 732.87. The South Korean markets had been halted temporarily on Monday after they fell 8%, triggering circuit breakers. Mainland China’s CSI 300 closed about even to end at 3,342.98, while Hong Kong’s Hang Seng index was little changed as of its final hour of trade. Australia’s S&P/ASX 200 ended up 0.41% to reach 7,680.6. Oil prices climbed more than $1 on Tuesday, paring the previous day’s loss as concern that an escalating Middle East conflict could hit supplies outweighed fear of a possible U.S. recession that could hurt demand in the world’s biggest oil consumer. Brent crude futures gained $1.25, or 1.6%, to $77.55 a barrel by 0037 GMT, while U.S. West Texas Intermediate crude futures climbed $1.35, or 1.9%, to $74.29. Gold prices inched up on Tuesday and analysts noted that the non-yielding metal’s outlook remains positive as latest commentary from Federal Reserve officials and data point towards bigger U.S. interest rate cuts. Spot gold last rose 0.15% at $2,411.35 per ounce. Bullion fell as much as 3% in the previous session, caught in a global sell-off driven by fears of a U.S. recession. U.S. gold futures gained 0.3% to $2,451.70.