The Dow Jones Industrial Average's roller coaster ride continued on Tuesday as the market gained over 1,000 points by midday, one day after losing over 900 points.
By mid-afternoon, the Dow Jones remained more than 800 points above Monday's close.
The Dow Jones has mostly been in decline over the last month as President Donald Trump's economic policies have brought angst among investors. Among President Trump's policies, a global 10% tariff, in addition to 145% duties on imports from China, has raised questions about the future of the U.S. economy.
The Dow Jones Industrial Average was close to hitting 45,000 in February before declining to below 38,000 earlier this month. As of mid-Afternoon Tuesday, it remained above 39,000.
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Several stocks that saw weeks of significant declines, such as Amazon, Apple, Walmart, and Nike, had solid rebounds on Tuesday. The rebound comes one day after President Trump met with representatives from Walmart, Target, Lowe's, and Home Depot regarding economic policy.
The Dow's rebound arrives despite concerns expressed by the International Monetary Fund in its World Economic Outlook, which was released on Tuesday. In it, economists say global economic activity is likely to slow in the coming year due to President Trump's policies.
"Intensifying downside risks dominate the outlook," the report states. "Ratcheting up a trade war, along with even more elevated trade policy uncertainty, could further reduce near- and long-term growth, while eroded policy buffers weaken resilience to future shocks. Divergent and rapidly shifting policy stances or deteriorating sentiment could trigger additional repricing of assets beyond what took place after the announcement of sweeping U.S. tariffs on April 2 and sharp adjustments in foreign exchange rates and capital flows, especially for economies already facing debt distress."
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