Dow Surges 1086 Points, Biggest Single-day Gain in History
Both the S&P 500 and Nasdaq saw huge rebounds in the first day of trading following the Christmas holiday, when the market was closed, climbing 5 and 5.8 percent, respectively.
U.S. stocks rebounded sharply on Boxing Day with the Dow Jones Industrial Average surging 1,086 points, or 5 percent, aot 22,878.45, its biggest single-day point gain in history.
"The market is extremely oversold where we left it" on Monday, said Brett Ewing, chief market strategist at First Franklin Financial Services in Tallahassee, Florida. "You cannot make the assumption that this correction is over, but today's action is definitely a very positive signal."
Both the S&P 500 and Nasdaq saw huge rebounds in the first day of trading following the Christmas holiday, when the market was closed, climbing 5 percent and 5.8 percent, respectively.
In addition, the extremely postive performance on Wall Street fuelled Chinese companies trading in New York, with e-commerce giant Alibaba Group Holding Ltd. (NYSE: BABA) climbing nearly 5 percent to close at $138 per share. JD.com Inc. (Nasdaq: JD) rose nearly 7 percent today, offsetting part of the drop the company has suffered this year. IQiyi Inc. (Nasdaq: IQ) ended at $15.63, up 53 cents. Baidu Inc. (Nasdaq: BIDU) gained nearly 4 percent to close at $163.04 per share.
Stocks were particulary helped by the fact that sales during the 2018 U.S. holiday shopping season rose 5.1 percent to more than $850 billion, the strongest in six years, according to a Mastercard report. The S&P 500 retailing index jumped 5.4 percent, while shares of online retailer Amazon (Nasdaq: AMZN), which touted a "record-breaking" season, climbed 6.9 percent.
Ten of 11 major S&P 500 sectors were in positive territory, with the technology sector, beaten down during the recent pullback, up 3.8 percent.
Also helping investor sentiment, the head of the U.S. Federal Reserve faces no risk of losing his job and President Donald Trump is happy with his Treasury secretary, a White House official said in an apparent attempt to calm Wall Street's nerves frayed by Trump's previous criticism of the Fed.
The most recent decline in stocks followed a Fed meeting last week when it raised interest rates again and Fed chairman Jerome Powell did not soften his tone about the outlook for further financial tightening to the degree investors had hoped.
"I think the market is realizing that the Fed is open to being more flexible," Ewing said.
The S&P 500 soared 116.60 points to end at 2,467.70, while the Nasdaq Composite leapt 361.44 points to 6,554.36.
(Reuters contributed to this article)