The Spanish IBEX 35 stock index rebounded slightly on Tuesday after its worst fall since March 2023, accompanied by rises in Asian stock markets and some improvement in confidence in the U.S. economy.

The Nikkei soared more than 10% to over 34,500 points after plunging 12.4% on Monday on widespread fears that the US was heading for a recession.

Weak US jobs data released on Friday and a string of worse-than-expected corporate results for technology companies triggered a broad sell-off in stock markets on Monday.

However, the US macroeconomic data released at the beginning of the week helped to dampen the storm. The stronger-than-expected ISM services report and comments from the Fed's Mary Daly brought calm to market players.

Many traders even speculated that the Fed would hold an extraordinary meeting to lower rates, according to analysts at Renta 4.

"During yesterday's session, the market discounted a 100% probability of a 50 bp rate cut for the September 18 meeting, a percentage that today stands at 73.5%," explained the brokerage firm.

According to the FedWatch tool, the market expects an easing of about 100 basis points for this year and a similar amount for 2025.

Even with Tuesday's rebound, uncertainty persists, and analysts point to the possibility of more volatile market movements in the near term.

At 07:07 GMT on Tuesday, Spain's benchmark IBEX 35 was up 44.00 points, or 0.42%, to 10,467.40 points, still at its lowest levels since March this year, while the FTSE Eurofirst 300 index of large European stocks was up 0.71%.

In the banking sector, Santander rose 1.34%, BBVA gained 0.97%, Caixabank advanced 1.82%, Sabadell gained 2.07%, Bankinter gained 0.34%, and Unicaja Banco rose 2.47%.

Among the large non-financial stocks, Telefónica fell 0.32%, Inditex dropped 0.51%, Iberdrola lost 0.54%, Cellnex fell 0.86%, and the oil company Repsol rose 1.34%.

(Information by Javi West Larrañaga; edited by Tomás Cobos).