U.S. stocks rose on Tuesday as traders bought the dip after central bank interest rate hikes drove sharp weekly losses in global stocks.

Wall Street’s S&P 500 was down more than a fifth from its January high, but was up 2.4% by late morning in New York as trading resumed after Monday’s holiday. The tech-heavy Nasdaq Composite rose 2.9%.

The energy, technology and consumer cyclical sectors were the S&P’s biggest gainers.

In Europe, the regional Stoxx 600 rose 0.4%, extending gains from the previous session but still down about 16% so far this year.

“The market has been terrible, selling everything indiscriminately,” said Patrick Spencer, vice chairman of equities at RW Baird. [that you] Tends to be seen in the later stages of the decline”.

The FTSE global index of developed and emerging markets stocks fell last week by the most since March 2020, falling 5.7%, its tenth loss in 11 weeks. The S&P fell 5.8% last week.

Earlier, the Fed raised its key interest rate by 0.75 percentage points, the first such move since 1994. Federal Reserve Governor Christopher Waller later expressed support for another 0.75 percentage point increase in July, saying the central bank was “all in” to re-establish price stability after U.S. inflation hit a 40-year high in May.

“We’re long overdue for a bear market rally because 10 out of 11 weeks of declines are a bit extreme,” said Hani Redha, multi-asset portfolio manager at PineBridge Investments.

“It doesn’t really change the bigger picture of slower growth and tighter financial conditions.”

In the government bond market, the yield on the benchmark 10-year U.S. Treasury note, which underpins global loan pricing, rose 0.06 percentage point to 3.3 percent. The policy-sensitive two-year Treasury yield rose 0.05 percentage point to 3.21%. Bond yields rise as prices fall.

The Bank of England and the Swiss National Bank also raised interest rates last week, while the European Central Bank has positioned the market for its first rate hike in more than a decade in July.

The yen hit a 24-year low of 136.33 against the dollar on bets that the Bank of Japan remains reluctant to follow other major rate-setters in raising borrowing costs.

Money markets predict the Fed will raise its funds rate to around 3.6% by December. Most economists surveyed by the Financial Times believe the world’s largest economy will slip into recession next year.

On Monday, Dublin-based building materials group Kingspan sounded the alarm over what it called a deterioration in global market “sentiment”.

A survey of global purchasing managers will provide clues on Thursday about companies’ order volumes and how they are coping with rising food and fuel costs due to Russia’s invasion of Ukraine and supply chain failures exacerbated by China’s coronavirus lockdown.

In Asia, the FTSE index of Asian shares outside Japan rose 1.7%, while Tokyo’s Topix closed up 2.1%.

Elsewhere, the euro rose 0.3% to $1.054 after European Central Bank President Christine Lagarde pledged to shield weaker euro zone countries from soaring borrowing costs.

Brent crude, the oil benchmark, rose 0.4% to $114.61 a barrel, having gained nearly 50% since the start of the year.