Stock futures take a breather after 1,000 point Dow rally

29 December, 2018, 00:55 | Author: Darnell Patrick
  • Seth Wenig  AP FILETraders work on the floor of the New York Stock Exchange in New York Dec. 24 2018

Wall Street's wild Christmas week goes on, with the Dow Jones Industrial Average slumping 300 points at the open Thursday, a day after notching its biggest-ever point gain.

The Dow Jones Industrial Average and the S&P 500 Index both came a hair shy of topping 5 percent. Before the recent bounce, the index fell 20 percent from its recent peak, slipping into a bear market.

Meanwhile, the tech-heavy Nasdaq index jumped 5.8 per cent to 6,554.

"We are in a bear market and when that happens the whole market gets cheap."
Many economic barometers still look encouraging.

Big retailers were among the gainers. Visa added 3 percent to $125.32, while Mastercard gained 3.5 percent to $180.82. The S&P 500 and technology-heavy Nasdaq Composite also bounced.

A lack of news and light trading that traditionally accompany the holiday season also combined with cheaper prices due to a turbulent month of trading to encourage investors to buy more stocks. A reminder that consumers-a key part of the American economy-remain on solid footing helped soothe anxiety created by fears of a global slowdown and personnel churn in the USA administration.

The plunge in stocks on Monday stateside came after Mnuchin held calls with CEOs of major US banks last weekend and issued a statement saying, "The banks all confirmed ample liquidity is available for lending to consumer and business markets".

Markets had reacted negatively to several events coming out of the nation's capital: the partial government shutdown, the resignation of Defense Secretary Jim Mattis and what was widely seen as a bungled response to the market turmoil by Treasury Secretary Steven Mnuchin. Shares of Chevron dropped 1.6 percent. -China trade dispute and rising interest rates have dogged stocks since the end of summer, and the major indexes are still down more than 10 percent this month alone, with three more trading days left in the year. The Standard & Poor's 500 rose 0.9 per cent to 2,488.83 after being down 2.8 per cent at midday. KeyCorp declined 3.7 percent to $14.16 as the yield on the 10-year Treasury fell to 2.74 percent from 2.79 percent late Wednesday.


In Asian markets, the Nikkei 225 index rebounded 3.9 percent, while South Korea's Kospi was little changed. Sydney's S&P-ASX 200 gained 0.7 percent to 5,634.30 and benchmarks in New Zealand, Taiwan and Southeast Asia also rose.

A headline appeared on a television screen on the floor of the New York Stock Exchange, Wednesday.

Retail, technology, and energy stocks were among the best performers.

The market had been down most of the day as the selling that has gripped Wall Street for most of December resumed. PulteGroup climbed 4.7 percent to $25.85.

Oil plunged. Brent crude dropped 2.1% to $54.11 per barrel. The Dow sank more than 2 percent, then recovered almost all of the day's losses, before again falling more than 2 percent.

The dollar strengthened to 111.36 yen from 110.41 yen on Monday. The euro advanced to $1.1456 from $1.1430. It fell $1.97 the previous session to $52.73.

Gold edged up 0.1 percent to $1,273 an ounce and silver gained 2 percent to $15.12 an ounce.

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