US Stocks rally to erase point drop in dow | Newsradio 1020 KDKA

Marcus Newton
December 29, 2018

US stocks soared on Wednesday, with the Dow surging more than 1,000 points, as investors tried to regain some of the steep losses suffered in the previous trading sessions.

Even with Wednesday's rebound the Dow Jones, S&P 500 and Nasdaq are still down 15.4 percent, 16.4 percent and 19.8 percent respectively from their all-time highs earlier this year - according to statistics from Fox News.

Stock markets in Asia were mixed on Wednesday.

"There are reasons we should be volatile, including a lot of unknowns as we head into 2019, starting with tariffs", said JJ Kinahan, chief markets strategist for TD Ameritrade, noting that below-average trading volume this time of year is also contributing to the market's volatility this week. Amazon had its biggest gain in more than a year. Government data showed profit for companies in steel, construction materials, oil, chemicals and equipment manufacturing declined 1.8 percent from a year earlier, a reverse from October's 3.6 percent gain. The rally in oil prices, and in stocks for that matter, could be due in part to a bounce from oversold conditions, with market participants wanting to buy the dip. -China trade war have led investors to fear the short-term trend of the market, with some anticipating a full-blown recession to hit the US economy.

Stocks are opening higher Friday as USA markets try to maintain the momentum from a late-day rally on Thursday.

The partial government shutdown that began over the weekend has weighed on the market.

Even shares of department store JCPenney (JCP), which dipped below $1 for the first time, ended higher on the day.

US stock futures pointed to a slight rebound Wednesday morning in the wake of Wall Street's steep fall on Monday.

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Bonds prices rose. The yield on the 10-year Treasury slipped to 2.78 percent from 2.79 percent late Wednesday, although the yield dropped as low as 2.73 percent when stocks were near their lowest levels as investors sought safer investments. (NASDAQ: AMZN) in percentage terms.

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. The swing was indicative of the volatility that has gripped the stock market throughout December.

The stagnation in the progress of resolving the trade war between the USA and China supported by the Federal Reserve's increasing interest rate have continued to take a toll on the global economy and major stock markets in leading regions such as Japan, South Korea, and China. After the shortened trading had been completed on Christmas eve, with a considerable decline of nearly three per cent, showed the rate table is now at the Sounding of the closing bell, a substantial increase of 4.98% to 22 878,45 points.

Oil plunged. Brent crude dropped 2.1% to $54.11 per barrel.

The U.S. dollar strengthened to 111.13 yen from 110.41 yen on Monday.

The Dow lost 1,883 points over the prior four trading sessions and is still down 2,660 for December. It fell $1.97 the previous session to $52.73.

European markets were also mixed, with Frankfurt's DAX showing a small gain, while the FTSE 100 (London) and the CAC 40 (Paris) moved lower.

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

Other reports by MaliBehiribAe

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