US stocks rebound but market still “trading on fear”

Markets were mixed on Tuesday.

The STOXX Europe 600 fell 0.5 percent and the Nikkei 225 fell 0.5 percent, tracking the US market's Monday decline.

However, the S&P 500 jumped 1.3 percent.

“This is still a market trading on fear instead of fundamentals and on tweets instead of technicals, which has made it frustratingly difficult to figure out where we’re headed in the near term,” said Andrew Adams, an investment strategist at Raymond James.

However, Chris Beachamp, chief market analyst at IG, said in a note: “In truth the market was merely overexposed and primed for a drop.”