Markets mixed as US stocks erase Monday gains

Markets were mixed on Tuesday.

The Nikkei 225 surged 2.7 percent early in the day and the STOXX Europe 600 followed with a 1.2 percent gain.

However, US stocks plunged. The S&P 500 fell 1.7 percent while the Nasdaq Composite tumbled 2.9 percent.

Mark DeCambre at MarketWatch noted that the US stock market decline on Tuesday erased nearly all its gains on Monday. “That is not a good sign” he said.

Indeed, Michael Batnick, director of research at Ritholtz Wealth Management LLC, noted that big rallies like that on Monday “don’t usually occur in healthy markets”.