Wall Street Rebounds After Brutal Sell-Off Dow Soars 1,000 Points

US stocks surged Tuesday as investors returned to the market after a sharp Monday downturn, shaking off fears tied to interest rate uncertainty and a potential crisis in Federal Reserve independence.

The Dow Jones Industrial Average jumped 1,000 points, or 2.74%, in a broad rally. The S&P 500 climbed 2.7%, and the Nasdaq Composite added 2.87% as tech stocks bounced back.

Markets had been on edge following President Donald Trump’s escalating criticism of Federal Reserve Chair Jerome Powell. His pressure campaign for interest rate cuts has stoked concern about the Fed’s ability to operate independently, a core principle of the central bank.

“A multi-front trade war is by itself a lot for stocks to handle, so adding a Fed independence crisis on top of it has markets understandably jittery,” said Jeff Buchbinder, chief equity strategist at LPL Financial.

On Monday, stocks, bonds, and the US dollar all sold off in a rare triple dip, rattling investors and defying typical market behavior. Treasury yields ticked lower Tuesday, and the dollar edged higher, signaling a fragile return to stability.

Gold prices hit a record high above $3,500 per troy ounce as investors flocked to the safe-haven asset. The yellow metal is up more than 30% this year.

Despite Tuesday’s gains, all three major indexes remain on track for their worst month since 2022. The Dow is headed for its worst April since 1932, according to FactSet.

The IMF weighed in on the global economic picture, warning that the ongoing trade war intensified by Trump’s new tariffs is expected to weigh heavily on growth. The agency now forecasts global GDP to slow to 2.8% in 2025, with US growth dipping to 1.8%.

Meanwhile, Wall Street is bracing for more earnings reports this week, including Tesla’s results due after the bell. The electric vehicle giant has lost more than 40% of its market value this year, as backlash against Elon Musk’s political influence and declining sales in Europe weigh heavily.

Analysts say investor sentiment remains fragile. CNN’s Fear and Greed Index continues to show “extreme fear,” with little sign of relief amid a volatile mix of political uncertainty and economic tension.

As the week progresses, markets will be watching closely for signs of movement in trade talks and whether the Fed can maintain its independence in the face of growing political pressure.