NEW YORK — U.S. stocks jumped in a widespread rally Tuesday, and other U.S. investments steadied a day after falling sharply on worries about President Donald Trump’s trade war and his attacks on the head of the Federal Reserve.

The S&P 500 climbed 2.5%. The Dow Jones Industrial Average rose 1,016 points, or 2.7%, and the Nasdaq composite gained 2.7%. All three indexes more than made up their big losses from the start of the week.

The value of the U.S. dollar also stabilized after sliding against the euro and other competitors, while longer-term Treasury yields held steadier as more calm returned to financial markets. Sharp, unusual moves for the dollar and for Treasurys have recently raised worries that Trump’s policies are making investors more skeptical about U.S. investments’ reputation as the world’s safest.

The only prediction many Wall Street strategists are willing to make is that financial markets will likely continue to veer up and down as hopes rise and fall that Trump may negotiate deals with other countries to lower his tariffs. If no such deals come quickly enough, many investors expect the economy to fall into a recession.

The International Monetary Fund on Tuesday slashed its forecast for global economic growth this year to 2.8%, down from 3.3%. But Vice President JD Vance also said he made progress with India’s prime minister, Narendra Modi, on trade talks Monday.

A suite of better-than-expected profit reports from big U.S. companies, meanwhile, helped drive U.S. stocks higher.

Equifax jumped 13.8% after reporting a better profit for the first three months of 2025 than analysts expected. It also said it would send more cash to its shareholders by increasing its dividend and buying up to $3 billion of its stock over the next four years.

3M climbed 8.1% after the maker of Scotch tape and Command strips said it made more in profit from each $1 of revenue during the start of the year than it expected. The company also stood by its forecast for profit for the full year, though it said tariffs may drag down its earnings per share by up to 40 cents per share.

Homebuilder PulteGroup rose 8.4% after it likewise delivered a stronger profit for the start of 2025 than analysts expected.

It’s been benefiting from some of the sharp moves in the bond market. Drops for Treasury yields during the first three months of the year translated into lower mortgage rates for potential customers, though yields have been largely rising since early this month.

CEO Ryan Marshall said buyers “remain caught between a strong desire for homeownership and the affordability challenges of high selling prices and monthly payments that are stretched.”

Tesla rose 4.6% ahead of its earnings report, which arrived after trading ended for the day. That trimmed its loss for the year so far to roughly 41%.