NEW YORK — (CNN) It may be safe to wade back into stocks Tuesday with one note of caution: China is still in deep turmoil.
Global markets are rebounding broadly after investors suffered one of their worst sessions in years on Monday.
U.S. stock futures were rising nearly 3% and Europe climbed, though China stocks extended a horror run.
Here are the 5 things you need to know before the opening bell rings in New York:
1. China tumbles: Stocks in China continued their downward spiral Tuesday, extending a selloff that panicked investors around the world. The Shanghai Composite plunged 7.6%, while the smaller Shenzhen Composite slumped 7.2%.
Uncertainty over the stock market and the Chinese economy has driven sharp selling, and many analysts expect more intervention from the government to bolster growth.
But China’s pain was largely contained Tuesday. Of the other major Asian markets, only Japan slumped again with the Nikkei tumbling nearly 4%.
Markets in Korea and Australia — which is particularly sensitive to worries about Chinese growth — finished with solid gains.
2. Oil rebounds: Oil prices also found a firmer footing, putting on 2% to just above $39 a barrel. Demand has been slugged in recent months by oversupply of crude and worries about the outlook for the global economy.
Still, a shadow hangs over commodity markets. Industrial metals were under pressure, signaling concern over big buyer China and the health of the world economy. Copper gave up 3% and nickel tumbled 8% in London trading.
3. Europe recovers: European markets are climbing in early trading, with Germany’s DAX adding 2.6% and the U.K. FTSE index rising 2.4%. Solid second quarter GDP numbers for Germany, and an upbeat reading of business sentiment in Europe’s biggest economy, were helping.
4. Monday market recap: It was dramatic session for U.S. stocks — beginning with an unprecedented 1,000-point drop for the Dow — driven by deep fears about China’s economic slowdown. The Dow Jones industrial average closed down 3.6%, while the S&P 500 lost nearly 4%, and the Nasdaq gave up 3.8%. All three indexes are now experiencing a correction.
5. Earnings and economics: Best Buy and DSW post quarterly results before the market open.
On the economic front, the S&P Case-Shiller June home price index for the U.S.’s 20 biggest metro areas is due at 9 a.m. ET.
Homes sales for July are expected from the Federal Census Bureau at 10 a.m. ET.
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