Wall Street notches best day in 10 years in holiday rebound
WASHINGTON — Wall Street notched its best day in 10 years as stocks rallied back Wednesday, giving some post-Christmas hope to a market that has otherwise been battered this December.
The Dow Jones Industrial Average jumped more than 1,000 points — its biggest point-gain ever — rising nearly 5 percent as investors returned from a holiday break. The benchmark S&P 500 index also gained 5 percent and the technology heavy Nasdaq rose 5.8 percent.
But even with the rally, the market remains on track for its worst December since 1931, during the depths of the Great Depression, and to finish 2018 with its steepest losses in a decade.
Technology companies, health care stocks, banks drove much of the broad rally. Retailers also were big gainers, as traders cheered a healthy holiday shopping season marked by robust consumer spending. Amazon had its biggest gain in more than a year.
But what really might have pushed stocks over the top was a signal from Washington D.C. that President Donald Trump would not try to oust the chairman of the Federal Reserve.
On Monday, Trump tweeted another critical volley about the central bank’s policy, rattling markets over the possibility the White House might interfere with the traditionally independent Federal Reserve. But in an interview with The Wall Street Journal published Wednesday, a White House economic adviser said that Fed chairman Jerome Powell is in no danger of being fired.
Energy stocks also rebounded as the price of U.S. crude oil notched its biggest one-day gain in more than two years.
All told, the S&P 500 index rose 116.60 points, or 5 percent, to 2,467.70. The Dow soared 1,086.25 points, or 5 percent, to 22,878.45. The tech-heavy Nasdaq gained 361.44 points, or 5.8 percent, to 6,554.36. The Russell 2000 index of smaller-company stocks picked up 62.89 points, or 5 percent, 1,329.81.
Trading volume was lighter than usual following the Christmas holiday. Markets in Europe, Hong Kong and Australia were closed.
“The real question is do we have follow-through for the rest of this week,” said Sam Stovall, chief investment strategist for CFRA.
