US. Stock futures moved in favor on Wednesday as Wall Street reopened following a shortened pre-Christmas trading session that turned out to be the worst in the history of the stock market.
The rest of the week will see normal trading days after Monday closing earlier on Christmas and Tuesday.
How do benchmarks work?
Dow Jones Industrial Average Futures
fell 8 points to 21,696 while the S & P 500 Futures Level was down
ESH9, + 0.13%
rose 3.45 points or 0.1% to 2,345 and Nasdaq 100 futures
NQH9, + 0.07%
rose 3.5 points to 5,894.75.
In a shortened Christmas Eve session on Monday, the Dow Jones Industrial Average
fell 653.17 points or 2.9% to 21.0792,20, marking its lowest level since 7th September 2017, while the S & P 500 index
fell 2.7% to 2,351.10, the lowest since April 21, 2017. The Nasdaq Composite Index
fell 2.2% to 6,192.92, the lowest level since 10 July 2017.
Another negative meeting on Wednesday would mark five straight losing sessions, and last week was the worst trading week since the 2008 financial crisis. The Nasdaq officially entered the bear market on Friday and is now 23.6% off its record close Dec 29th declined. The S & P declined 19.8% from its record high of September 20, and the Dow fell 18.8% from its October 3 close.
Read: When the Stocks Lose in December, Wall Street Strategists Expose 2019 Profits
What's driving the market?
With many merchants traveling on holidays, it is expected that volume will be lower and movements may be exaggerated. Monday's dramatic session took place after Treasury Secretary Steven Mnuchin tweeted that he had spoken with the CEOs of the country's six largest banks to assess the state of health of the banking system, raising concerns that the administration knows something, what the market does not know. [19659002IntheholidayinCaboSanLucasMexicohieltMnuchinamMontageinclaimingthepresidentofFinancialMarkets"todiscusscoordinationeffortstosafeguardnormalmarketoperations"
A source close to the White House told CNN that Mnuchin could be "seriously endangered" by an increasingly frustrated US President Donald Trump, who publicly supported his senior Cabinet member. Mnuchin supported the appointment of Federal Reserve President Jerome Powell, whose monetary policy and Trump's recent interest rate were severely criticized. However, a source from the White House told CNN that Mnuchin's job was not in the lead.
"They raise interest rates too fast because they think the economy is so good. But I think they will make it soon. I really do, "said Trump on Tuesday in his Christmas message from the Fed. Some blamed Monday's accelerated losses on a tweet by Trump blaming the Fed for its share price.
The only problem our economy has is the Fed. They have no sense of the market, they do not understand the necessary trade wars or strong dollars or even democratization of borders. The Fed is like a mighty golfer who can not score because he has no touches – he can not putt!
– Donald J. Trump (@realDonaldTrump) December 24, 2018
Read: Tim Mullaney says Mnuchin can not stand up to his boss – and that costs you money.
Read: Why Trump Powell Can not Fire Because of Monetary Policy Mistakes
Meanwhile parts of The Federal Government remains closed as legislators in Washington are fighting to fund Trump's planned boundary wall. Trump also said Tuesday that the government will not reopen until "we have a wall, fence, whatever you want to call it.
How are other markets traded?
Japan's Nikkei 225 Index
NIK, + 0.89%
surged 0.9% after a 5% slump on Tuesday in response to Wall Street losses. China's Shanghai Composite
was slightly lower. European stock markets will be reopened on Thursday after a long holiday break.
The ICE Dollar Index
DXY, + 0.01%
was 96.63, while gold was flat
GCG9, + 0.38%
rose 0.4% to $ 1,276.70 per ounce. February West Texas Intermediate Crude
CLG9, + 0.52%
surged 0.4% to $ 42.71 a barrel.
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