Dow Jones soars more than 1,000 points in largest single-day increase

Dow Jones soars more than 1,000 points in largest single-day increase

USA stocks staged one of the biggest rallies of the 9 1/2 year bull market after coming within points of seeing it end, with major indexes surging at least 4.9 per cent. The Dow rose for the first time in a single trading session of more than 1000 points. Like the Nasdaq, the S&P remains close to bear market territory, signaling the possible end of the longest bull market in USA history. The Nasdaq was up 4 percent and on track to wipe out Monday's losses. Brent crude, used to price worldwide oils, gained 8 per cent to US$54.47 a barrel in London.

Perrigo gave up 5.8 percent to $38.35, one of the big decliners in the health care sector.

The S&P is now down 15.8 percent since its all-time high on September 20.

Traders Peter Tuchman, right, slaps a high five before the closing bell on the floor of the New York Stock Exchange, Wednesday, Dec. 26, 2018.

Bond prices fell. The yield on the 10-year Treasury is up to 2.76 percent.

Benchmarks for both oil and stocks hit their lowest in more than a year on Monday, with the S&P 500 on the cusp of being declared officially in a bear market during what is usually a calm week of trading shortened by the Christmas holiday.

The S&P 500 is down 205.91 points, or 7.7 percent.

Gold edged up 0.1 percent to $1,273 an ounce and silver gained 2 percent to $15.12 an ounce. However, the White House on Wednesday denied a CNN report that Treasury Secretary Steven Mnuchin's job was in "serious jeopardy" The White House economic adviser Kevin Hassett was interviewed in televisions and he said that he was confident that President Donald Trump was happy with Mnuchin. Only one of the S&P 500's components, Newmont Mining, finished down on the day.

US stocks attempt rebound

In recent days, Trump's tweet attacks on the Fed and chairman Jerome Powell for raising interest rates stoked fears about the central bank's independence, unnerving the market.

"There are reasons we should be volatile, including a lot of unknowns as we head into 2019, starting with tariffs", said JJ Kinahan, chief markets strategist for TD Ameritrade, noting that below-average trading volume this time of year is also contributing to the market's volatility this week.

The partial US government shutdown that started Saturday is unlikely to hurt the economy much, although it may deprive the financial markets of data about global trade and gross domestic product.

The heavy-weight FAANG group - Facebook Inc (FB.O), Amazon, Apple Inc (AAPL.O), Netflix Inc (NFLX.O) and Alphabet Inc (GOOGL.O), rose between 1 percent and 4 percent.

Benchmark U.S. crude dropped 1.5 per cent to $45.52 a barrel in NY.

The decline in oil prices weighed on energy stocks. Brent crude, used to price worldwide oils, lost 4.2 percent to $52.16 a barrel in London.

The slide in USA markets followed a sell-off in major indexes in Europe. Australia's S&P-ASX 200 rallied 1.5 percent to 5,575.60. The euro weakened to $1.1351 from $1.1404. A bear market is a drop of 20 percent from a peak.

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