US stocks rebound sharply following Monday’s brutal selloff

Major US equity indices extended overnight historic fall and opened sharply lower for the fourth consecutive session on Tuesday.

The negative movement started on Friday after the latest US jobs report showed wages increased at the fastest pace in 8-1/2 years and triggered inflation fears, which might force the Fed to be more aggressive than previously expected in raising interest rates. 

Meanwhile, an unprecedented spike in volatility, with the CBOE Volatility Index (VIX)surging to its highest level since September 2008, further collaborated to the brutal selloff across global equity markets. 

A rapid selloff over the past few trading sessions now seems to have exhausted and was seen as a buying opportunity. The same was evident from a sharp rebound across the board.

At the time of writing this report, the Dow Jones Industrial Average was up nearly 150-points to 24,485 and the broader S&P 500 Index traded with gains of around 16-points near 2,665. Meanwhile, tech-heavy Nasdaq Composite Index climbed over 40-points and moved back above the 7,000 mark.