Markets rally as Turkey fears ease

NEW YORK — U.S. stocks rallied Tuesday as banks, retailers and smaller companies jumped. That helped the market recover most of its losses from the previous two days.

The Turkish lira steadied as officials from Turkey and the U.S. said the countries are in talks to ease diplomatic tensions, which have resulted in high tariffs on Turkish steel and aluminum.

In the U.S., the biggest gains went to small and mid-size companies, which do more business domestically compared to the large multinational firms. Retailers rose, thanks in part to strong quarterly reports.

The reduced tensions with Turkey also stopped a rally in bond prices and sent yields and interest rates higher.

Many retailers will report their quarterly results this week, a potential hint about how much money consumers are spending.

Global markets fell Friday and Monday on concern that Turkey’s currency turmoil could spread to banks in other countries and affect the world economy. Those jitters eased later Tuesday.

Economists say Turkey’s central bank still needs to raise interest rates significantly to strengthen its currency. President Recep Tayyip Erdogan has ruled out that step.

Bond prices moved lower. The yield on the 10-year Treasury note rose to 2.90 percent from 2.88 percent.

Tesla privatization to get oversight

Tesla announced that its board had created a committee to review a potential proposal by CEO Elon Musk to take the company private. After Musk tweeted last week about having “funding secured” for a possible buyout of the electric carmaker, the board said Tuesday that it had yet to receive a formal proposal. The three independent directors who make up the committee “have the full power and authority” of the board to evaluate and negotiate any potential transaction to take Tesla private, the company said. The company stressed that “no assurances can be given” that any proposal from Musk would be accepted.

Turkey’s Erdogan rails against Apple

When Recep Tayyip Erdogan, the Turkish president, sought to fend off a coup attempt two years ago, he appealed to his supporters via FaceTime, the Apple video chat app. On Tuesday, though, he turned against Apple, delivering a nationalist broadside in calling for a boycott of American electronics products. “Every product that we buy in foreign currency from outside, we will produce them here and sell abroad,” Erdogan said. “We will boycott the electronics products of the U.S.” The comments by the Turkish leader were particularly remarkable given that he and several of his top ministers are frequently seen with iPhones.