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Home / Business / Wall Street has its best day in the holiday experience for 10 years

Wall Street has its best day in the holiday experience for 10 years




Wall Street has had its best day in 10 years as the shares rallied on Wednesday. This gives hope to Christmas to a market that was struck otherwise in December. 19659011] The Dow Jones Industrial Average jumped more than 1,000 points – its biggest ever gain – and rose nearly 5 percent as investors returned from a holiday break. The S & P 500 benchmark index also gained 5 percent and the technology-heavy Nasdaq rose 5.8 percent.


But even with the rally, the market for the worst December since 1931 in the depths of the Great Depression remains on course in 2018 with the steepest losses in a decade.

Technology companies, healthcare stocks and banks drove much of the broad rally. Retailers also made big profits as traders cheered for a healthy Christmas sales season driven by robust consumer spending. Amazon had the biggest profit in more than a year.


But what the stock could have really exaggerated was a signal from Washington DC that President Donald Trump would not seek to oust the chairman of the Federal Reserve. On Monday, Trump tweeted another critical salvo about central bank policy and shook markets about the possibility that the White House might upset the traditionally independent Federal Reserve. In an interview with The Wall Street Journal, released Wednesday, a White House economic adviser said that Fed Chairman Jerome Powell was not in danger of being fired.

Energy prices also rebounded as the price of US crude oil increased its daily profit in more than two years.

Overall, the S & P 500 Index rose 116.60 points or 5 percent to 2,467.70. The Dow rose 1,086.25 points or 5 percent to 22,878.45. The tech-heavy Nasdaq rose 361.44 points or 5.8 percent to 6,554.36. The Russell 2000 index of smaller company shares rose 62.89 points or 5 percent (1,329.81).

Trading volume was lower than usual after the Christmas holidays. The markets in Europe, Hong Kong and Australia were closed.

"The real question is whether we've gone through the rest of this week," said Sam Stovall, Chief Investment Strategist CFRA.

Wednesday's gains pulled the S & P 500 back from the edge of Wall Street's bear market – a 20 percent decline from the high of an index. Another stumbling would have marked the end of the longest bull market for equities in modern history after nearly 10 years. The index has fallen from an all-time high of 20 September to an all-time high of 15.8 percent.


Equities fell sharply on Monday after Trump turned down the central bank. Government officials had spent the weekend reassuring the financial markets that Fed Chairman Jerome Powell's job was safe. On Tuesday, Trump reiterated his view that the Federal Reserve is raising interest rates too fast, but called the independent agency's rate hike "a form of security" for a well-functioning economy. [Wednesday] [6559012] – White House Chairman Kevin Hassett announced Wednesday that the House Advisory Council pointed out that Powell was not in danger of being fired, the Wall Street Journal reported.

The weak conclusion comes by 2018, as most economists expect growth to slow in 2019, though not enough to slip into a full-blown recession. Many economic barometers still look encouraging. Unemployment, at 3.7 percent, is the lowest since 1969. Inflation is tame. Wage growth has increased. Consumers spent their expenses during this holiday season.

Nevertheless, traders were uneasy this fall on signs of a slowdown in the global economy, the escalating US trade dispute with China, and another Fed hike. Many investors fear that corporate profits – which boost the stock markets – will weaken.

Some of what Wall Street expects from the White House has contributed to the market's uncertainty, in particular the President's attacks on the US Federal Reserve and comments on the ongoing trade dispute with China.

The president could help stabilize the market by giving his thumb a holiday, Stovall said.

"Tweet things that are more constructive An agreement with the Democrats and with China, and then you remain silent with respect to the Fed," Stovall said.

Technology stocks accounted for much of the early upswing on Monday. Adobe rose 8.7 percent to $ 222.95. The payment processors Visa and Mastercard also rose higher. Visa increased 7 percent to $ 130.23 while Mastercard rose 6.7 percent to $ 186.43.

Large retailers were among the winners. Amazon climbed 9.4 percent to $ 1,470.90. Kohl rose 10.3 percent to $ 65.92. Nordstrom climbed 5.8 percent to $ 46.75.

After an early downturn, homebuilders rallied after a report that annual growth in US real estate prices eased in October. PulteGroup climbed 4.7 percent to $ 25.85.

US crude oil rose 8.7 percent to $ 46.2 per barrel in New York. Brent crude, used at the price of international oil prices, rose 7.9 percent in London to $ 54.47 a barrel.

The rise in oil prices helped boost energy stocks. Marathon Petroleum rose 4.8 percent to $ 56.93.

Bond prices fell. The yield on the 10-year Treasury note rose from 2.75 percent at the end of Monday to 2.79 percent.

The dollar rose from 110.41 yen to 111.36 yen on Monday. The euro fell from $ 1,1404 to $ 1,1351.

Gold rose 0.1 percent to $ 1,273 per ounce and silver increased 2 percent to $ 15.12 per ounce. Copper rose 1.5 percent to $ 2.70 a pound.

The closure of the US government, which began in part on Saturday, is unlikely to hurt the economy, even though it may withhold data on international trade and gross domestic product from the financial markets. The Bureau of Economic Analysis said Wednesday that it was necessary to suspend all operations until Congress approved the financing. This means that the government is unlikely to release its fourth quarter gross domestic product report for the 30th of January.

The South Korean Kospi fell 1.3 percent, while the Japanese Nikkei 225, which fell 5 percent on Tuesday, rose 0.9 percent. Stocks fell in Taiwan, Singapore and Indonesia, but rose in Thailand.

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AP Economics writer Josh Boak contributed to this story from Washington.


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