Markets Right Now: US stocks rally, erase big drop in Dow

Markets Right Now: US stocks rally, erase big drop in Dow

Markets Right Now: US stocks rally, erase big drop in Dow

The Dow Jones Industrial Average rose by more than 1,080 points, or about 5 percent, its single biggest daily point gain ever.

"If the market closes down for the year, which looks likely ... it will only be the 13th time that we've seen a full year decline since 1960", Zidle said. Retailers entered the holidays with momentum as online sales jumped 26.4% from a year earlier between the Wednesday before Thanksgiving through Black Friday, one sign of an early buying surge, according to Adobe Analytics.

Over the weekend, reports surfaced that President Trump was asking advisers if he could legally fire Fed Chairman Jerome Powell. Trump expressed confidence in Mnuchin yesterday.

"We continue to see strong economic growth in the USA economy with robust activity from consumers and business", Mnuchin added in the statement on Sunday.

The Australian market is heavily influenced by sentiment in larger overseas markets, particularly Wall Street. The soaring share prices of technology companies - especially the so-called Faang companies, Facebook, Amazon, Apple, Netflix and Google - helped push stock markets to new highs.

The NASDAQ, however, which is already in bear territory - or down 20 percent off the year's high - failed to rally. European stocks could also return about 6 percent, said Ryan Primmer, head of investment solutions. The Dow has dropped 1 percent or more in eight of the 17 trading sessions.

The three major US indexes all posted their biggest one-day percentage gains since March 2009, in the first day of trading following the Christmas holiday, when the market was closed. Crude jumped nearly 10 per cent.

Crude surged, the greenback was stronger versus its major peers and Treasuries fell.

The near-decade long bull market that began in March 2009 earned a reprieve on Wednesday's rally.

The Dow closed at 22,878 the day after Christmas, a 1,086-point, almost five percent gain on the day. "They have record kinds of numbers". That meant big rewards for investors who saw any dip as an opportunity to buy at lower prices. Even with Wednesday's big gains, the Dow, S&P 500 and Nasdaq are all down more than 10 percent for the month. The Dow closed down 653 points. A correction is generally defined as a 20 percent retreat off recent highs.

In other trading Wednesday, South Korea's Kospi gave up 1.3 percent, while Japan's Nikkei 225 index, which plunged 5 percent on Tuesday, picked up 0.9 percent.

For a brief time, stocks rebounded, but were sent tumbling when President Donald Trump reignited concerns about the relationship between the White House and the Federal Reserve after it raised its benchmark interest rate one-quarter point, to 2.5 percent, last week.

"Investors went bargain shopping the day after Christmas, where stocks just got too cheap relative to earnings, future earnings, any reasonable assessment of earnings", Chris Rupkey, managing director of MUFG told CNN.

A recession is coming, they said.

Trump has been complaining for months about Fed monetary policy, claiming rising interest rates are putting a brake on his economic plans. Chris Weston of Pepperstone Group Limited said in a market commentary. "So while there is a minority view that stocks would rally if Powell were to be replaced, I believe it would cause a serious sell-off because of what it represents".

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