Economy

Dow notches record point surge in dramatic rebound

Dow notches record point surge in dramatic rebound

The S&P ended Monday 19.8 percent below its all-time closing high, with roughly three-fourths of its stocks already in a bear market.

Stocks rocketed on Wednesday in Wall Street's best day in 10 years, snapping a stomach-churning, four-day losing streak and giving some post-Christmas hope to a market that has been battered this December.

Retailers gained, with the S&P 500 retailers sub-index.SPXRT jumping 1.75 percent, after a Mastercard report showed USA holiday sales were the strongest in six years. Facebook and Amazon shares were up more than 6 percent each.

Twitter jumped 4.6 percent and Mastercard gained 3.9 percent in early trading, the biggest gainers as traders returned from the Christmas holiday. Amazon rallied nearly 9.5 percent, as the company announced record-breaking holiday sales.

All told, the S&P 500 rose 116.60 points Wednesday, or 5 percent, to 2,467.70.

On Wednesday, White House economic adviser Kevin Hassett said that Trump was happy with Mnuchin's performance and told an NBC reporter that Federal Reserve Chair Jerome Powell's job is "100 percent" safe.

Investors have been shaken by recent economic and political developments, including the abrupt resignation of Defense Secretary Jim Mattis; a partial federal government shutdown; an interest rate hike; speculation that Trump might seek to fire Powell; Mnuchin's calls to USA banks; and Trump's sudden decision to withdraw US troops from Syria against the counsel of his national security team. But despite Wednesday's surge, it remained on pace for its biggest monthly percentage drop since February 2009, during the throes of the financial crisis. The Cboe Volatility Index, or VIX, sits well over 30 at 34.06, even after falling 5.6% today.

People walk on Wall Street in front of the New York Stock Exchange (NYSE) in New York February 6, 2018. The Dow soared more than 1,000 points - its biggest one-day point spike ever - for a gain of more than 4%, to 22,813.56, while the S&P 500-stock index rose almost 3 percent and the tech-heavy Nasdaq jumped 4 percent.

More news: Trump May Ban US Firms From Cooperating With Huawei, ZTE in January

The Nasdaq is up 221.36 points, or 3.5 per cent.

However, the Fed failed to signal that it was easing off its tighter policy approach as much as markets had expected.

Gains in banks, retailers and health care companies are outweighing losses in energy stocks and elsewhere in the market. Markets in Europe, Hong Kong and Australia were closed.

Bank stocks fell along with Treasury yields.

US benchmark oil rose 1.1 per cent to $45.08 a barrel, giving a modest boost to energy stocks. PulteGroup climbed 2.2 percent to $25.22.

The figures suggest a stock-market swoon and partial government shutdown haven't curbed consumer confidence and spending.

But investors weighed that against a dour housing report from S&P/Case-Shiller, which showed the growth in home prices was at a two-year low. Korean shares tumbled after a holiday, and Shanghai stocks fell for a second day.


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