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Markets Recover After Trump’s Fed Criticism and Monday’s Sell-Off

U.S. stocks rebound over 2% as investors turn to earnings and Fed commentary for clarity while gold and the dollar stabilize.

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Bitcoin ETFs hit highest inflows since January as Bitcoin rebounds.
The Art Deco facade of the original Toronto Stock Exchange building is seen on Bay Street in Toronto, Ontario, Canada January 23, 2019.   REUTERS/Chris Helgren/File Photo

Overview

  • Major U.S. indices regained over 2% on Tuesday, recovering Monday’s steep losses triggered by President Trump’s attacks on Federal Reserve Chair Jerome Powell.
  • Gold reached a record high of $3,500 per ounce before retreating slightly, reflecting persistent investor caution despite equity market recovery.
  • The U.S. dollar steadied after hitting a three-year low on Monday, as concerns over Fed independence and trade policy continued to weigh on sentiment.
  • Corporate earnings, including reports from Tesla, Lockheed Martin, and Verizon, are in focus as investors assess economic resilience amidst policy uncertainty.
  • Treasury yields stabilized following Monday’s bond market sell-off, with analysts closely watching upcoming Fed speeches for policy direction.