US stocks rocketed back on Tuesday, soaring after three days of intense selling that marked the worst sell-off since the start of the COVID-19 pandemic.

The rally in US stocks followed the move higher in global markets. with European and Asian stocks up as well on news that President Donald Trump and the administration are working to line up trade deals with countries impacted by tariffs.

Here's where US indexes stood at 9:57 a.m. ET:

Treasury Secretary Scott Bessent told Fox Business on Monday that Japan is likely to get priority for a deal as they came forward "very quickly."

The mega-cap "Magnificent Seven" tech stocks rebounded sharply, with Nvidia and Tesla up more than 6% at the open, and Amazon up 5%, and Microsoft up over 3%.

In Europe, Dutch payments group Adyen gained 6.5%, Spanish bank Santander rose 6.4%, and French aerospace company Safran rose 5.1%. Automakers BMW, Volkswagen, and Mercedes-Benz reversed earlier declines to trade in the green.

Hong Kong and China shares rose after news of state-linked purchases. Central Huijin Investment, a state-owned investment firm, said it has increased its holdings of exchange-traded funds, Xinhua state news agency reported on Tuesday.

Indonesian stocks slumped nearly 10% on the first trading day after weeklong public holidays. Taiwanese shares remain weak.

European stocks regained ground:

Asia's major indexes closed mostly higher:

Analysts remained wary following trillions of dollars in stock market losses since Trump announced sweeping tariffs against the world last Wednesday.

Yeap Jun Rong, an IG market strategist, wrote in a note on Tuesday that markets have sold down so much over the last few days that there could be a massive swing in sentiment on even "the slightest positive news" about the tariffs.

"For now, some calm has descended with the VIX pulling back from its recent high, as countries head into the 'negotiating phase' for tariffs," he wrote, referring to the CBOE Volatility Index.

Volatility reigned in the US markets on Monday, with the S&P 500 officially entering bear market territory only to spike 8.5% momentarily due to inaccurate news that Trump was considering a 90-day pause for the tariffs. The index ended the day 0.2% lower.

"Despite this morning's recovery, markets are hardly in a good place right now, with an incredible amount of volatility still happening across different asset classes," Deutsche Bank analysts wrote in a Tuesday note.

Among the risks is a further escalation between the US and China, which have slapped retaliatory tariffs on each other recently and issued fresh tariff threats, indicating neither side is backing down.

Some analysts say investors should consider the long-term upheaval Trump's tariffs could bring to company profits and valuation, particularly in the US.

"Decades of outsized market gains and high household exposure to equities mean negative wealth effects will be stronger in America, as is the potential for valuation downgrades and foreign fund repatriation," wrote analysts at Global Data.TS Lombard in a Monday note.

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