Wednesday 18 September 2019

US stocks recover from brink of bear market after worst-ever rout

'In the latest instalment of America's policymaking saga, traders are weighing Mr Trump's expressions of confidence in Steven Mnuchin against recent reports the Treasury Secretary's job is in jeopardy.' Photo: Getty
'In the latest instalment of America's policymaking saga, traders are weighing Mr Trump's expressions of confidence in Steven Mnuchin against recent reports the Treasury Secretary's job is in jeopardy.' Photo: Getty

Samuel Potter

US stocks rebounded from the worst-ever pre-Christmas session as investors hoped for an end to the turmoil in American markets.

The S&P 500 halted a four-day rout of almost 8pc, clawing back from the brink of a bear market on speculation the selling had gone too far given a relatively robust economy.

Amazon surged after reporting record holiday sales. Banks weighed, turning lower for the 14th drop in 15 sessions.

The price of crude oil surged, while the US dollar was slightly stronger versus its major peers and Treasuries slipped. Exchanges throughout Europe remained closed for the Christmas holiday.

The stock rebound is a rare bright spot in one of the most miserable Decembers on record for investors, as a host of headwinds combined to drag down America's benchmark index. Year-end and Christmas disruption has arrived just as fears of a global slowdown and personnel churn in the administration of US president Donald Trump, inset, sap confidence.

"These are incredibly tricky markets to decipher, as the outsized moves are not reflective of the current US economic landscape," said Stephen Innes, head of Asia-Pacific trading at Oanda Corp in Singapore. "But that seems to matter little so far, as fearmongering continues to permeate every pocket of global capital markets."

Bloomberg

 

Bloomberg

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