Dow Surges 1,000 Points as Markets Recover From Christmas Eve Disaster

Dow Surges 1,000 Points as Markets Recover From Christmas Eve Disaster

Stocks are falling sharply Thursday, making the prior day's strong performance seem like an aberration, as Wall Street stumbles toward what could be its worst December since the Great Depression.

Volatility has been the norm this month.

USA stocks are on track for their worst year since 2008, which was during the Great Recession, and their worst December since 1931, which was during the Great Depression.

To call the bottom, Antonelli is looking for, along with other indicators, at least two consecutive days in which the percentage of stocks rising exceeds 90, an event that happened today.

"Putting the recent equity market declines into historical context lessens their sting and points toward opportunities on the market landscape", he said.

Adding to investors' fears, Treasury Secretary Steven Mnuchin made an unusual announcement that major USA banks had "ample liquidity", adding confusion about banks' health to already volatile market conditions. The Dow was down 375 points, the S&P 500 fell 1.8% and the Nasdaq was down 2.3%.

This therefore means that NASDAQ is down by more than 20 percent from the value of 29 of august when it had recorded its high. Both indexes rose about 5 percent Wednesday, when the Dow had its biggest-ever single-day point gain. The Nasdaq composite picked up 5.8 percent to 6,554.36. The Russell 2000 index of smaller-company stocks picked up 45 points, or 3.6 percent, 1,312. Prices are still deep in a bear market, down more than 40% from their October peaks. Advanced Micro Devices lost 6 percent to $16.83.

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Perrigo lost 5.7 percent to $38.39, one of the big decliners in the health care sector.

"We've had times when we dropped 20 percent and went into recession but this is an example, so far, where the market realizes a recession isn't imminent, and going down 20 percent doesn't make sense", said Chris Zaccarelli, chief investment officer at the Independent Advisor Alliance.

Bond prices fell. The yield on the 10-year Treasury rose to 2.76 percent. The price of oil has fallen roughly 25 percent over the past year on fears of a global slowdown. And a almost 9% rise in oil prices offered a respite for shares of beaten-down energy companies. The S&P 500 also soared 4.9 percent.

Traders work on the floor of the New York Stock Exchange (NYSE) on December 21, 2018 in New York City. Brent crude, used to price worldwide oils, gained 0.6 percent to $51.10 a barrel in London.

CURRENCIES: The dollar eased to 110.90 yen from 111.37 yen late Wednesday. The euro strengthened to $1.1444 from $1.1351. Facebook, Alphabet, and Netflix, meanwhile, fell more than 1%.

The markets were rattled by an unprompted announcement by Treasury Secretary Steven Mnuchin over the weekend that the USA banking system was solid.

The major averages were closed for the holiday Tuesday, a day after posting their worst Christmas Eve on record. However, Germany's DAX and the Britain's FTSE pushed lower, but the indices avoided heavy Monday losses.

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