The Dow Jones Industrial Average had its biggest point gain since 2008 on speculation that possible trade talks between the US and China will avert a trade war.
The bulls would not go down without a fight and the market began to recover around midday.
THE QUOTE: "While we caution that markets appeared to be lurching toward the "hopeful" end of "cautiously hopeful, ' we sympathize with the 'half-full" gambits emerging", says Vishnu Varathan of Mizuho Bank in Singapore of the reaction to the possible U.S. In fact, it is poised to post a roughly 200-point gain after a few days of frenzied trading. The S&P 500 was up 2.72 percent at 2,658.57.
The Standard & Poor's 500 index rose 70.29 points, or 2.7 percent, to 2,658.55. That prompted fears the spat might depress trade worldwide and set back the global economic recovery.
China also hit back on Trump's earlier aluminum and steel tariffs by threatening its own tariffs on about $3 billion worth of imports of U.S. goods, including pork, fruit, and wine. "He's done these things in the past, and now it looks like the markets are telling us, 'Yep, that's what's happening'".
Microsoft jumped 7.6 per cent and Bank of America climbed 4.4 per cent. The Nasdaq climbed 195 points, or 2.8 per cent, to 7,188.
Apple Set to Unveil Cheaper iPad This Week
But Apple's laptops are significantly more expensive than its iPad, which costs as little as $299 at Apple's education price . While potentially new hardware will keep us tuned in, Apple will be focusing on the software side of things as well.
Investors were encouraged by signs that the US and China are open to negotiating to avert a trade dispute.
The Dow finished over 300 points lower, reversing course after trading up as much as 244 points. The Federal Trade Commission on Monday announced it is investigating the company after reports that Cambridge Analytica abused the information of 50 million users.
ENERGY: Benchmark U.S. crude added 17 cents to $65.72 a barrel in electronic trading on the New York Mercantile Exchange. The stock eked out a gain of 67 cents, or 0.4 percent, to $160.06. Today, it's little changed at 15768.89. Wholesale gasoline lost 2 cents to $2.01 a gallon.
Gold fell $13, or 1 percent, to $1,342 an ounce. The tech-heavy Nasdaq Composite fell by 2.9 percent.
In Europe, Germany's DAX fell 0.8 percent, while France's CAC-40 lost 0.6 percent. The FTSE 100 index of leading British shares was 2.1 percent higher. In Asia, Tokyo's Nikkei 225 added 0.7 percent, while Hong Kong's Hang Seng rose 0.7 percent. South Korea's Kospi rose 0.6 percent. India's Sensex rose 0.3 percent.