Published: Sat, December 29, 2018
Finance | By Kristine Clayton

Dow Jones soars more than 1,000 points in largest single-day increase

Dow Jones soars more than 1,000 points in largest single-day increase

The Dow rose more than 1,080 points, or almost five percent, marking the first time in history the exchange rose more than 1,000 points in a single day of trading.

Benchmark U.S. crude, meanwhile, climbed 8.7 per cent to US$46.22 a barrel in NY. The index rebounded partially from those lows on Wednesday, gaining 0.89 percent on the day.

Economists called the big market moves a "reflex rally" after Monday's drop, which left Wall Street on track for its worst December since the Great Depression.

Traders and investors said technical market factors also contributed to the rally. The Nasdaq Composite dropped 97.16 points, or 1.48 per cent, to 6,457.19 at the opening bell. The Russell 2000 index of smaller-company stocks picked up 45 points, or 3.6 percent, 1,312.

The upbeat news from the retail sector shows that the consumer, which accounts for a huge chunk of the USA economy, is healthy and optimistic enough to get out and spend-or stay at the keyboard and spend-despite the volatility that the stock market has seen in November and December.

All three major USA indexes gained at least 4 percent on Wednesday.

The S&P 500 is up 41 points or 1.7 percent to 2,391 at midday.

BUYBACK BOOST: JD.com rose 1.5 percent to $20.02 after the Chinese e-commerce company's board authorized a stock buyback program of up to $1 billion.

A partial government shutdown, Treasury Secretary Steven Mnuchin's questions about banks' health and signals that President Donald Trump could fire Federal Reserve Chairman Jerome Powell upset markets on Monday, sending the Dow down 653 points. Visa added 3 percent to $125.32, while Mastercard gained 3.5 percent to $180.82. Eastern Time. The Dow slid 585 points, or 2.6 percent, to 22,292.

Wall Street stocks roared back to life yesterday, shaking off four straight routs following strong retail sales data and White House reassurances that Fed Chair Jay Powell won't be fired.

The broad-based S&P 500 also surged five per cent to 2,467.70, while the tech-rich Nasdaq Composite Index advanced 5.8 per cent to 6,554.36.

Energy stocks were close behind, led by Marathon Oil (MRO), which surged 11.9% Wednesday. The Nasdaq was up about 4.8%, pulling out bear market territory.

Political turmoil this week has added to concerns about a cocktail of factors - including slowing growth, trade tensions, and more expensive refinancing after years of stimulus - that have weighed on global markets in recent months.

US stocks staged a furious rally a day after dropping to the brink of a bear market. Bank of America, JPMorgan and Goldman Sachs slipped more than 1 percent as the yield on the the 10-year Treasury fell to 2.76 percent from 2.79 percent.

CURRENCIES: The dollar strengthened to 110.57 yen from 110.41 yen on Monday.

European markets returned to trading following the Christmas and Boxing Day holidays to trade mixed. The euro weakened to $1.1387 from $1.1404. It fell $1.97 the previous session to $52.73. Tokyo's Nikkei 225 index was up less than 1 percent, while markets in Shanghai and Hong Kong were down less than half a percent. London's FTSE was little changed, Germany's DAX fell 0.7 percent and France's CAC was up 0.6 percent.

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