Global stocks continued to rebound Tuesday, getting a fresh lift as North Korea pulled back its threat to attack Guam. After days of heated rhetoric between North Korea and President Donald Trump, Pyongyang dialed back the political tensions Tuesday with North Korean state media saying Kim Jong Un had decided not to fire missiles at the U.S. territory.

European stocks on Monday bounced back from last week's sharp losses after senior U.S. officials over the weekend sought to play down the risk of a nuclear conflict with North Korea. The Stoxx Europe 600 index SXXP, +1.08% rallied 1.1% to close at 376.16, winning back parts of the 2.7% loss it suffered last week.

U.S. stocks gained on Monday with the S&P 500 rising 1% for the first time in three months as the verbal standoff between the U.S. and North Korea cooled for now. The S&P 500 SPX, +1.00% added 24.52 points, or 1%, to close at 2,465.84. The best performers were technology shares XLK, +1.59% and real-estate stocks.