US and European stocks rise but “markets basically are broken”

Markets were mostly higher on Tuesday.

The S&P 500 surged 6.0 percent and the STOXX Europe 600 jumped 2.3 percent. However, the Shanghai Composite slipped 0.3 percent.

Plans by the US and Spanish governments to mitigate the effects of the COVID-19 pandemic with fiscal measures helped support markets.

However, David Rosenberg, chief economist and strategist of Rosenberg Research, warned of more volatility ahead. “Who knows about the next couple of days,” he said. “The markets basically are broken.”