U.S. equities staged a broad recovery on Tuesday, regaining some of the ground lost over the past several sessions amid recession concerns.

Prior to today, global stocks had erased more than US$6 trillion in value over a three week-period, and the question now is whether we’re at the beginning of a deeper unwind.

Investor sentiment soured in part on worries the U.S. economy may be heading into a recession, coupled with fears market valuations had become too inflated.

For Canada, any significant downturn in the U.S. will have serious economic ramifications, potentially tipping our economy into a recession.

Bloomberg’s Erik Hertzberg reports that the Bank of Canada is likely to accelerate its rate cutting trajectory. Markets are fully pricing in three more rate cuts before the end of this year, after the central bank cut borrowing costs in back-to-back meetings this summer.