Here's how benchmarks started trading after market open:

Stocks rose for a second straight session on Tuesday, as investors shook off earlier losses after Target issued a profit warning that impacted the broader retail sector. The Dow Jones Industrial Average rose over 250 points, while the S&P 500 Index and Nasdaq Composite each climbed nearly 1%.

Here's how the market settled on Tuesday:

S&P 500 Index (SPY  ): +0.95% or +39.11 points to 4,160.54

Dow Jones Industrial Average (DIA  ): +0.80% or +264.03 points to 33,179.81

Nasdaq Composite Index (QQQ  ): +0.94% or +113.86 points to 12,175.23

World Bank cuts global growth forecast, warns of stagflation:

The World Bank on Tuesday cut its global economic growth forecast and warned that many countries could fall into recession.

Global economic expansion is expected to drop to 2.9% in 2022 from 5.7% in 2021--1.2 percentage points lower than the 4.1% forecasted in January--the bank said in its latest Global Economic Prospects report. The bank also predicts growth will stay around that level through 2023 to 2024 while inflation remains above that target in most economies, raising stagflation risks.

Moreover, growth in advanced economies is projected to decelerate to 2.6% in 2022 from 5.1% in 2021 before slipping to 2.2% in 2023, the report said. Emerging market and developing economies expansion is projected to fall to 3.4% in 2022 from 6.6% in 2021.

"The war in Ukraine, lockdowns in China, supply-chain disruptions, and the risk of stagflation are hammering growth. For many countries, recession will be hard to avoid," World Bank President David Malpass said.

Target issues Q2 profit warning:

Target (TGT  ) said Tuesday that it now expects a short-term hit to profits, and plans to trim down excess inventory by offering discounts, canceling orders and reevaluating its expenses. This announcement comes just weeks after the company posted a wide earnings miss for the fiscal first quarter, pulling shares down nearly 25%.

"We thought it was prudent for us to be decisive, act quickly, get out in front of this, address and optimize our inventory in the second quarter--take those actions necessary to remove the excess inventory and set ourselves up to continue to be guest relevant with our assortment," CEO Brian Cornell told CNBC in an interview.

The retailer's stock were down nearly 4% midday on Tuesday, with shares of other retail giants like Walmart (WMT  ) and Costco (COST  ) also fell lower.