Dow Suffers Record-Breaking Christmas Eve Losses

Dec 28, 2018, 00:30
Dow Suffers Record-Breaking Christmas Eve Losses

The Dow Jones Industrial Average soared more than 1,000 points, posting its biggest daily point gain on record. It's looking for a reason to gain a little more confidence. Their 9.2 percent slump in the past four sessions was the steepest among the 11 major S&P sectors, while the S&P 500 tumbled 7.7 percent. Inflation is tame. Pay growth has picked up. Some suggest focusing on stocks from emerging markets, where proponents say particularly sharp drops in price have left them looking cheap. Consumers boosted their spending this holiday season.

U.S. Treasury yields also reversed direction after rising sharply on Wednesday, dropping three basis points to 2.765 per cent.

Monday saw the Dow fall more than 2 percent early in the day, before it bounced back to recover almost all of its losses - before falling again to end the day down almost 3 percent.

Adding to uncertainty, Reuters reported Trump is considering an executive order that would block United States companies from using equipment from China's Huawei Technologies and ZTE in the new year.

The president on Christmas Day cast fresh doubt on the record of Powell, whom he has increasingly blamed for the market weakness. Kohl's jumped 5.6 percent.

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Santa Claus rallies have been a fixture on Wall Street, according to Bob Manning of Morgan Stanley Wealth Management in Philadelphia.

THANKS, SANTA: Big retailers were among the gainers.

However, Chinese stocks were lower with the Shanghai Composite index falling 0.6 percent, marking its lowest close since November 2014, while the blue-chip CSI300 was down 0.4 percent.

Despite recent market swings, there is a good chance that stocks will continue to rise going into 2019. Brent crude, used to price global oils, was down 1.7 percent to $53.80 a barrel in London.

The slide in USA markets followed a sell-off in major indexes in Europe.

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Traders work on the floor of the New York Stock Exchange on Wednesday. The soaring share prices of technology companies - especially the so-called Faang companies, Facebook, Amazon, Apple, Netflix and Google - helped push stock markets to new highs. JD.com, meanwhile, rallied 3.5 percent in response to a report that the China-based internet giant will undergo a significant makeover.

The dollar fell to 110.53 yen from 111.36 yen on Wednesday.

Mnuchin held calls on Sunday with the heads of the six largest US banks in order to reassure nervous investors that the financial markets and economy were functioning properly. The euro weakened to $1.1387 from $1.1404.

Gold edged up 0.6 percent to $1,281.10 an ounce and silver gained 1.2 percent to $15.31 an ounce. The Bureau of Economic Analysis said Wednesday that it's required to suspend all operations until Congress approves funding, which means that the government might not release its fourth-quarter report on gross domestic product as scheduled for January 30. Shares fell in Taiwan, Singapore and Indonesia, but rose in Thailand.

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