US Markets stage 1000-point recovery, but is the pain over?

US Markets staged a 1000 point recovery, a comeback that market participants have not seen since the financial crisis. Nasdaq Composite had been down more than 4% on the session and closed up. For the Dow, which was down 3.25% at its low, it was the biggest intraday comeback since the wild trading of March 2020.

Also watch: Market Carnage: Sensex, Nifty see mayhem in Monday's trade

The final 10 minutes of trading saw all three major stock indexes close higher —capping a dramatic day of trading that began with markets in free fall Monday morning.

Stocks have fallen for much of this year as the market readies for the Fed to raise interest rates to try to tame inflation, which is at its highest level in nearly four decades. The Fed will hold their 2-day meet starting January 25-26. 

Despite Monday’s rebound, the S&P 500 is still down 7.5% this month, on pace for its worst monthly performance since the outbreak of the pandemic in March 2020.