Dow futures jump almost 500 points after a steep sell-off, with a 'sympathy bounce' for global stocks

US stock futures climbed Tuesday as global equities rose, signaling a recovery after last week's brutal sell-off.

Markets in the US are expected to start the week on a positive note after being closed for the Juneteenth holiday. The futures on the S&P 500 were higher than the futures on the DJIA. The tech-laden Nasdaq 100 gained 1.71%.

After the central bank hiked interest rates for the first time in 18 years, investors worried that the move could cause a recession and sent the three major US indexes tumbling.

"It looks like we will see a sympathy bounce for risk assets today," Simpson said. It seems like a good opportunity for a small countertrend rally before the next leg lower for global equities.

The global stock market moved higher Tuesday.

In Europe, the pan-continental STOXX 600 index gained 1.1% in early trading, with Paris' CAC 40 rising 1.74%. The London stock market was up.

Christine Lagarde, president of the European Central Bank, warned on Monday of a severe risk of correction in the Eurozone's financial and housing markets.

She said that the risk of a further and possibly abrupt fall in asset prices remained severe.

In Asia, the stock market finished the day in the green. Beijing continued to battle a mild Covid-19 flare-up, which caused the Hang Seng to jump 1.81%.

The other major asset classes are doing well.

• The fixed income market's pains continued, with 10-year US Treasury yields up 32 basis points to 3.27%.
• Oil prices moved higher. Brent crude was up 1.47% at $115.80 a barrel, and WTI crude gained 2.09% to reach $111.85 a barrel.
• Investors sold some of their gold, which slipped 0.02% to $1,840 an ounce. But Silver climbed 0.64% to $21.72 an ounce.
• Cryptocurrencies recovered some of their losses after plummeting over the weekend. Bitcoin gained 3.24% to move back above $21,000, and ethereum rallied 3.50% to reach $1,163.

After another brutal week for stocks and a big rate hike by the Fed, are we close in on a market bottom?