Stocks rebound after pre-holiday thumping
Stocks surged on Wall Street yesterday, with the Dow Jones Industrial Average vaulting more than 1,000 points, its biggest one-day point-gain ever.
Investors recouped all their losses from Wall Street’s Christmas Eve plunge as stocks rallied across all sectors, giving markets their best single-day percentage gain in 10 years.
The Dow Jones gained 5pc or 1,086 points to 22,878. The benchmark S&P 500 gained 5pc or 116 points to 2,467. Nasdaq rose 5.8pc or 361 points to 6,554.
The rebound came as the Trump administration attempted to shore up investor confidence and markets welcomed a report on strong US holiday spending.
Benchmarks for both oil and stocks hit their lowest in more than a year on Monday, with the S&P 500 on the cusp of being declared officially in a bear market during what is usually a calm week of trading shortened by the Christmas holiday. Markets in Ireland, Britain, Germany and France were closed on.
Kevin Hassett, chairman of the White House Council of Economic Advisers, said yesterday that U.S. Federal Reserve Chairman Jerome Powell’s job was not in jeopardy. Just two days ago President Donald Trump described the Fed as the “only problem our economy has” as the central bank raises interest rates.
Investors have been unnerved by the potential for weaker economic growth and a partial US federal government shutdown.
A Mastercard report that sales during the US holiday shopping season rose 5.1pc to over $850bn in 2018, the strongest in the past six years, helped stocks, as did the higher crude prices.