Dow Jones jumps 600 points
Dow Jones jumps 600 points as Wall Street rally gains momentum
U.S. stocks rose strongly as investors sought to recoup sharp losses from the previous session, after President Donald Trump's criticism of Federal Reserve Chairman Jerome Powell dampened market sentiment. The Dow Jones Industrial Average rose 677 points, or 1.8%, while the S&P 500 rose 1.7%, and the Nasdaq Composite climbed 1.9%.
Shares of several major companies posted notable gains. Tesla rose 3% ahead of its first-quarter results, Netflix jumped 4%, and Meta and Amazon gained 1% and 2%, respectively. 3M Industrials rose 6% after reporting better-than-expected earnings, boosting the Dow, according to a report published by CNBC.
Today's gains followed a violent session on Monday, during which markets tumbled sharply. The Dow Jones lost more than 970 points, and the S&P 500 and Nasdaq fell more than 2%, marking the fourth consecutive session of losses for the latter two indices.
Uncertainty in the markets was heightened after Trump posted on Truth Social that the US economy would slow down if the Federal Reserve did not cut interest rates, describing Powell as "Mr. Late" and a "big loser." Last week, he also hinted at the possibility of "firing" Powell, an unprecedented move that White House economic advisor Kevin Hassett said the presidential team was considering. Powell, however, confirmed that he could not be legally removed and that he intends to remain in office until the end of his term in May 2026.
These sharp market volatility follow Trump's announcement of "reciprocal" tariffs in early April, which has since led to a decline of more than 9% among the three indices. Investment analyst Jed Ellerbrook concluded, "This is an environment full of uncertainty, with few answers. The longer this uncertainty persists, the more negative its impact on the economy will be."
In a related context, Noor Capital's chief market strategist, Mohammed Hashad, said that stock market investors are looking for any positive news after a wave of declines due to negative news. Hashad added that US President Donald Trump's escalation against Federal Reserve Chairman Jerome Powell, whom he described as "the biggest loser," led to a significant decline in US stocks.
He continued, "Trump is seeking to undermine the legitimacy of the Federal Reserve and make it a scapegoat for any negative economic repercussions resulting from the trade war." He explained that this attack is not the first of its kind, as Trump previously attacked the Fed in 2018 and 2019. He noted that these threats negatively impacted investor confidence in US assets, leading to a decline of approximately 1,000 points in the Dow Jones index.
He explained that the rebounds witnessed in the markets today were supported by good results from some companies, but the bearish momentum still dominates US markets due to trade and geopolitical tensions. He expected Tesla's profits to grow, but at a slower pace than expected, noting that technology and energy companies are facing a dilemma due to the trade war between the United States and China.
He stated that American investors have lost confidence in US assets and are selling them out of fear rather than logic, adding, "We expect diversification in investment portfolios, but the general trend remains upward." He stated that rising US Treasury yields are leading to lower prices amid economic uncertainty. He also noted that investors' shift towards gold, safe-haven currencies, and digital currencies has contributed to the weak Treasury yields.
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