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Global stocks are rebounding Tuesday as some investors take advantage of recent massive losses , even as China threatened to hit back further if President Donald Trump hikes U.S. import tariffs by an additional 50% .

U.S. stock indexes are poised for a positive start, with Dow Jones Industrial Average futures rising 2%, S&P 500 futures gaining 1.5%, and Nasdaq futures 1.3% higher.

The Stoxx Europe 600 index is up about 1.5%, though still down more than 10% in the past week.

In Asia, the Nikkei closed up 6% after Treasury Secretary Scott Bessent told Fox Business that he expected Japan to get priority in trade talks "just because they came forward very quickly." Hong Kong's Hang Seng, where the biggest Chinese companies are listed, rose 1.5% as China said it would "fight to the end" if Trump increases his tariffs again.

In a note Tuesday, Morgan Stanley said it expects Trump's reciprocal tariffs to go into effect but thinks "there is scope for some rates to be negotiated lower into year end." The investment bank downwardly revised its outlook for the U.S. economy for "even slower growth and a sharp firming of inflation."

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