US stock markets rise after days of turmoil

US shares opened higher on 6 August, as a tentative calm returned to global markets following days of sharp falls.

The Nasdaq, the Dow Jones Industrial Average and the S&P 500 all closed higher, following a subdued trading session in the UK and Europe, with London's FTSE 100 initially rising before falling back.

In Japan, the Nikkei 225 stock index jumped by 10.2%, or 3,217 points in its biggest one-day gain in points, after the previous day's plummet.

The stock market rout began on 2 August, following disappointing US employment figures for July which showed that the jobless rate rose, sparking fears of a recession.

There has also been concern that shares in big technology companies - particularly those investing heavily in artificial intelligence (AI) - have been overvalued and some of those firms now face difficulties.

The volatility intensified on 5 August, spreading to Europe and Asia where Japan's Nikkei 225 slumped by 12%.

But by the end of 6 August the global picture looked more positive:

• The Nasdaq, which had experienced the most turmoil in recent days, closed 1% higher
• The S&P 500 rose by 1% and the Dow Jones was 0.8% higher
• In London, the FTSE 100 closed 0.2% higher while Germany's Dax ended flat and the French Cac 40 lost 0.3%
• As well as Japan, stock markets in South Korea and Taiwan also regained ground, rising around 3.5% after record falls.

However, according to a report in The Guardian, analysts said: “We might not be out of the woods yet.”

“We might not be out of the woods yet,” said Fawad Razaqzada, a market analyst at City Index, “though conditions could stabilise as the week progresses. With a quieter US economic calendar ahead, there will be fewer new recessionary signals to unsettle traders, and the potential for supportive comments from Federal Reserve officials could ease market pressure.”

(Source: bbc.com, theguardian.com)