Stocks showed signs of recovery on Tuesday following a challenging day of losses on Monday. The Dow Jones Industrial Average climbed by 625 points, representing a 1.6% increase. The S&P 500 also saw gains, rising by 2.2%, while the Nasdaq Composite experienced a 2.3% increase.
Investors are hopeful that the recent volatility in the market could potentially lead to a significant rally that may help offset some of the losses incurred in the past few days. Ben Kirby, co-head of investments at Thornburg Investment Management, expressed this sentiment in a note on Tuesday.
However, Kirby also issued a word of caution, suggesting that sustaining these gains over the long term might prove challenging without positive catalysts to drive the market forward. He highlighted that the momentum of the economy and risk assets could be impacted if such catalysts are not present.
