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Home / Business / Inventory: The ailing Dow and the S & P 500 open higher after a Christmas break

Inventory: The ailing Dow and the S & P 500 open higher after a Christmas break



US. Markets opened higher on Wednesday after Christmas turned off and recovered from the worst sell-off on Christmas Eve. While equities are still heading for the lowest December since the Great Depression of 1931 – and their first annual loss in nearly a decade – Wednesday's openings soon opened up relief as a new year loomed.

Investors seemed to calm down in the words of Kevin Hassett, a leading White House economic adviser, who assured reporters on Wednesday that Fed Chairman Jerome Powell's job was "100 per cent secured," though the president numerous reports had sought to dismiss the central banker from his chairmanship.

The S & P 500 stock index rose nearly 1

percent in the first moments of trading – the index's first rise since December 18 and its biggest gain in more than three weeks, Bloomberg News said. Trading, however, remained volatile on Wednesday. Both the S & P 500 and the Dow Index gained nearly 0.1% at 11:00 am Eastern time.

Asian markets were mostly lower after President Donald Trump said Tuesday it was "nothing new" in the partial government deadlock over a US-Mexican border wall that started on Saturday and showed no signs of weakening. Nothing new, nothing new to shut down, nothing new, unless we need border security, "Mr. Trump told reporters gathered at the Oval Office on Christmas Day.

The White House said the president would reject any deal that does not include funding for a wall or fence. The Democrats have opposed it and offer $ 1.3 billion for new security spending. The routines of 800,000 federal employees are expected to be disrupted by the closure, but essential services will continue to operate.

The President's Christmas criticism at the US Federal Reserve triggered a decline in Asian equities on Tuesday. "The only problem of our economy is the Fed," he said on Twitter on Monday. "They have no sense of the market, they do not understand unnecessary trade wars or strong dollars, or even democrats over borders."

Mr. Trump has since said rate hikes are a "form of security" for a well-functioning economy, but stressed that the Fed was raising interest rates too fast. He remained bullish on the US companies and their outlook and insisted on Tuesday at the Oval Office, "They have record-breaking numbers, and I think it's a tremendous buying opportunity, really a great buying opportunity."

Markets in Europe, Hong Kong and Australia were closed on Wednesday after Christmas. South Korea's Kospi fell 1.3 percent and the Shanghai Composite Index lost 0.3 percent. The Japanese Nikkei 225, which slumped 5 percent on Tuesday, gained 0.9 percent on Wednesday. Stocks fell in Taiwan, Singapore and Indonesia, but rose in Thailand.

"The oversized movements do not reflect the current US economic landscape, but that does not seem to be so long as the scare continues to permeate all parts of the global capital markets," analyst Stephen Innes of OANDA said in a market commentary.

Elsewhere, US real estate growth slowed in October, a likely consequence of higher mortgage rates hurting affordability and decreasing sales.

The S & P CoreLogic Case – Shiller 20 City's house price index rose 5 percent year-on-year, compared to a 5.2 percent annual increase in September. That is a decrease of 5.5 percent in the previous month in the previous month.

Housing prices have fallen, as buyers would not be able to afford a home. Prices have risen consistently faster than wages, a challenge that was tackled until a year ago by historically low mortgage rates. However, borrowing costs rose last year after President Donald Trump cut taxes by raising the budget deficit and increasing interest rates by the Federal Reserve.
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