On Wednesday, stocks rebounded from their recent losses with a dizzying climb that saw the Dow Jones Industrial Average take its biggest leap in history, zooming up almost 1,100 points.
BREAKING: Dow surges more than 1000 points, on pace for biggest point gain ever on record https://t.co/rDPDQu1lNT pic.twitter.com/zr4fCWHGch
— CNBC Now (@CNBCnow) December 26, 2018
The Dow Jones Industrial Average skyrocketed 1,086 points to rest at 22,878, the S&P 500 gained 116 points, or 5%, and the Nasdaq Composite leaped 5.8% to 6,554.
CNBC noted, “Retailers were among the best performers on Wednesday, with the SPDR S&P Retail ETF (XRT) jumping 4.4 percent. Shares of Wayfair, Kohl’s and Dollar General all rose at more than 6 percent. Data released by Mastercard SpendingPulse showed retailers were having their best holiday season in six years. Amazon’s stock also jumped 7.3 percent after the company said it sold a record number of items this holiday season.”
U.S. crude oil prices soared over 8%, helping oil stocks rise.
But John Augustine, chief investment officer at Huntington Private Bank, cautioned, “We still have a ways to go. We need to have three days of moving higher into the close to stem this wave of selling.” He added that the recent plummeting stock market “is a buyer’s strike due to lack of confidence in policymakers around the world. It’s going to take a long time to recover that confidence.”
Peter Cardillo, chief market economist at Spartan Capital Securities: “With the end of the quarter, we could get a bounce in the next few days,” but “the problem is [President Donald] Trump continues to create a lot of uncertainty.”
The bear market that investors feared may have to wait, at least temporarily. Wednesday morning, before the dizzying climb, CNBC wrote:
Fears have become reality.
The S&P 500 entered bear market territory Monday, dropping just more than 20 percent from its 52-week intraday high. The Dow Jones Industrial Average and the S&P 500 are now on track for their worst December performances since the Great Depression. If history is any guide, the downturn will last about a year as bear markets have lasted 13 months on average since World World II.
As investors desperately hope for any good news — whether from the administration or the Federal Reserve — to stop the stocks from their free fall, there is still value in the market to profit from.
Via DailyWire
