Asian shares have opened lower and are tracking the overnight plunge on Wall Street. As Trump keeps saying on Twitter, the United States economy also looks solid, with unemployment at a 17-year low.
President Donald Trump unveiled the country's latest budget Monday, with the White House calling for $3 trillion in deficit reduction, which would include $1.7 trillion in mandatory spending cuts, while proposing to cut discretionary spending by 2 percent a year after 2019. The yield on 2-year government bonds also rose to 2.077%.
Overseas, markets were also generally rising as well.More news: Johnny and Daniel face off again in first 'Cobra Kai' teaser
The Nasdaq jumped 107.47 (+1.56 percent) to close at 6,981.96, while the S&P 500 finished trading at 2,656.00, up 36.45 (+1.39 percent) for the day. Hong Kong's Hang Seng index added 1.4 percent to 29,884.06 and the Shanghai Composite Index advanced 1.0 percent to 3,185.86.
United States of America stocks went on another bumpy ride on Wall Street, dropping sharply in early trading before recovering their losses by lunch time. Small caps lagged a bit in the early action, with Russell 2000 futures 0.7% above fair value. Dow delivered its worst performance since January 2016. Australia's S&P/ASX 200 rose 0.6 percent to 5,854.60.
The Dow Jones Industrial Average climbed more than 400 points Monday, extending the recovery that began Friday after the stock market's lowest performing week in two years.More news: Sebastian Janikowski reportedly won't be brought back by Raiders
"The market was probably 10 to 15 percent overvalued, and we got a 10 percent correction", said Ablin, who said he moved one client into the stock market Friday.
Stocks closed sharply higher on Wall Street after another turbulent day of steep ups and downs. It's up 32 percent since the beginning of the year. Brent crude, used to price global oils, lost 20 cents to $62.59 a barrel in London. The broader Standard & Poor's 500-stock index and the tech-heavy Nasdaq were both up about 1.5 percent. Silver lost 20 cents, or 1.2 percent, to $16.14 an ounce.
"Over the short term, the selloff is likely to persist for the next few weeks because we are still in an adjustment period with people focusing on inflation data", said Lisa Erickson, head of traditional investments for US Bank Wealth Management. The 5.2% weekly decline for the S&P 500 was the worst in two years. Earlier Tuesday morning, major companies reported another round of strong profits, with General Motors, BP, Allergan, several health-care companies and others beating analysts' expectations. Chipmaker Applied Materials climbed 95 cents, or 2 per cent, to $49.03.More news: Tillerson, Erdogan meet amid heightened strain over Operation Olive Branch
Meanwhile, investors watched closely the latest news on Monday that the White House will unveil a long-awaited infrastructure plan that includes 200 billion USA dollars in federal infrastructure spending over 10 years.