Dow Jones soars 1,086 points in largest single-day increase

Specialist Meric Greenbaum works the floor Friday at the New York Stock Exchange

Specialist Meric Greenbaum works the floor Friday at the New York Stock Exchange

The Dow Jones rose nearly 5 per cent, or 1086.25 points, to 22,878.45, erasing losses from the Christmas Eve slump.

Technology companies and health care stocks, big gainers on Wednesday when the market had its best day in 10 years, took some of the heaviest losses in the broad slide.

The market's gyrations have resulted in unusual volatility for the final days of the year.

Stocks have been in a downward spiral with the Dow and S&P 500 down more than 12 percent this month - on track for their worst December performances since the Great Depression in 1931.

Still, world stocks stayed off near two-year lows, lifted by Wednesday's 1,000 point-plus surge on the U.S. Dow Jones index which was triggered partly by the strongest holiday sales in years.

All three major USA indexes - Dow, S&P and Nasdaq - finished down 2 percent or more on Christmas Eve. The S&P was up four percent Wednesday while the Nasdaq rose 4.8 percent. Stocks were buoyed by gains in tech and retail sectors, as well as a rise in crude oil prices, which jumped 9 percent after weeks of declines. Nasdaq rose 5.8 percent or 361 points to 6,554.

The Dow Jones gained 5 percent or 1,086 points to 22,878.

December is typically a buoyant month for stocks. Some suggest focusing on stocks from emerging markets, where proponents say particularly sharp drops in price have left them looking cheap.

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




Adding to investors' fears, Treasury Secretary Steven Mnuchin made an unusual announcement that major USA banks had "ample liquidity", adding confusion about banks' health to already volatile market conditions.

"The market was pressured by worries over Washington, the Fed and the threat of the trade war sparking a global recession", said Sam Stovall, chief investment strategist at CFRA Research.

On Thursday, some of the market's big winners the prior day lost ground. Futures on the S&P 500 had lost 43 points of the previous session's 129-point advance as of 7:16 a.m.in NY. Havens came back in vogue, with Treasury 10-year yields slipping below 2.8 per cent, and gold climbing with the yen.

Oil, which soared a stunning 8.7 percent in Wednesday's session, retreated almost 3 percent in late morning trades taking energy stocks such as Exxon Mobil and Chevron down with it. The S&P 500 index soared about 5 percent.

Elsewhere, WTI crude oil prices gave up a slice of the more than 8 per cent gain from the previous day.

The dollar strengthened to 111.36 yen from 110.41 yen on Monday. The euro weakened to $1.1387 from $1.1404.

The markets were rattled by an unprompted announcement by Treasury Secretary Steven Mnuchin over the weekend that the USA banking system was solid.

Canada's TSX index, closed for trading Wednesday due to the Boxing Day holiday, was down 16.8 per cent from its all-time high, set in July. The FTSE was down 1.6% and Germany's DAX fell 2.7%.

In Asian markets, the Nikkei 225 index rebounded 3.9 percent, while South Korea's Kospi was little changed.

Recommended News

  • Trump is third American president to visit Iraq

    Trump is third American president to visit Iraq

    Last month, Trump, who begins his third year in office next month, hinted he soon would visit troops deployed in a war zone. He had faced criticism before for being the first USA president since 2002 not to visit the troops around Christmas.
    Mattis Signs Order to Withdraw US Troops From Syria

    Mattis Signs Order to Withdraw US Troops From Syria

    He said his February departure date was created to minimize disruption on the department during the leadership transition. Trump initially praised Mattis for serving as defence secretary "with distinction" and achieving "tremendous progress".
    Crystal Palace shock defending champions Manchester City in English Premier League

    Crystal Palace shock defending champions Manchester City in English Premier League

    Goals from Jeffrey Schlupp , Andros Townsend and Luka Milivojevic led Palace to a remarkable 3-2 victory against the champions. John played so good in Leicester [in the unfamiliar position] so I wanted to give another option for [defending] long balls.
  • Worst of winter storm to hit well north of Mankato

    Worst of winter storm to hit well north of Mankato

    Snow that began on Wednesday and Wednesday night will continue to pile up Thursday night in many parts of the northern Plains. It's been a record year for precipitation in Nebrska-and that looks to continue through the New Year.
    Cardinals Claim D.J. Swearinger Off Waivers

    Cardinals Claim D.J. Swearinger Off Waivers

    He's also got 19 stops and three forced fumbles as a tackler, and two sacks and six total pressures when asked to blitz. Cunningham is the seventh offensive lineman the Cardinals have placed on injured reserve this season.
    North Korea ordered to pay parents, estate of student $500M

    North Korea ordered to pay parents, estate of student $500M

    He was blind, deaf, and brain dead when North Korea turned him over to USA government officials for his final trip home". North Korea said Warmbier contracted botulism while in detention, but US doctors found no trace of the illness.
  • Japan to restart commercial whale hunts

    Japan to restart commercial whale hunts

    Australia, one of Japan's biggest critics on the issue, said it was "extremely disappointed". The IWC imposed a commercial moratorium in the 1980s due to a dwindling whale population.
    How the Royal Family Celebrated Christmas 2018

    How the Royal Family Celebrated Christmas 2018

    Meghan Markle and Prince Harry joined his brother Prince William and sister-in-law Kate Middleton while walking to the service. And Kate confessed to a royal fan that Prince George and Princess Charlotte had been up "very early" opening their presents.
    Syrian air defence fire on 'enemy targets' as Israeli fighters spotted

    Syrian air defence fire on 'enemy targets' as Israeli fighters spotted

    Israel's aerial defence system shot down an anti-aircraft missile launched from Syria, the Israeli Air Force said in a statement. According to the Syrian Arab News Agency ( SANA ), the Israeli aircraft launched missiles through the Lebanese airspace.
  • 'Very possible' United States  shutdown could extend into new year, says budget director

    'Very possible' United States shutdown could extend into new year, says budget director

    It looks like Christmas will be over and done with before the federal government will have a chance to get fully back to business. Richard Shelby of Alabama, the chairman of the Appropriations Committee, who was the only member of the GOP leadership to attend.
    Where is Santa now? Follow NORAD’s Santa Tracker 2018

    Where is Santa now? Follow NORAD’s Santa Tracker 2018

    Santa fans can go to the NORAD Tracks Santa website as well as follow updates on its Facebook , Twitter , and YouTube accounts. The shutdown means 800,000 federal employees will not be paid from Saturday and many government operations will be disrupted.
    Fiancé Patrick Frazee Arrested For First-Degree Murder

    Fiancé Patrick Frazee Arrested For First-Degree Murder

    Her mother has said financial struggles delayed them from moving in together but that her daughter was excited to get married. However, De Young said that officials have not spoken directly to Frazee and were communicating through Loew.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.