Dow Industrials Leap More Than 1,000 Points Rout had Dow industrials, S&P 500 on brink of bear market
https://www.wsj.com/articles/u-s-stocks-poised-for-gains-11545827647
The Dow Jones Industrial Average surged more than 1,000 points for the first time in a single session Wednesday, rebounding after a bruising four-session selloff put the blue-chip index and the S&P 500 on the brink of a bear market.
All 30 stocks in the Dow industrials notched gains, as did each of the 11 sectors in the broader S&P. Shares of Amazon.com , Facebook and Netflix climbed more than 8%, while retailers rallied as early data on the crucial holiday shopping season appeared robust. And a nearly 9% rise in oil prices offered a respite for shares of beaten-down energy companies.
Worries about the Federal Reserve’s path of interest-rate increases, trade tensions with China and slumping oil prices have spooked investors for much of the fourth quarter, putting all three major U.S. indexes on track for annual declines for the first time since 2008. The blue chips lost more than 1,800 points, or nearly 8%, in the four trading sessions entering Wednesday.
“Hopefully the relief in the markets holds this week,” said Eric Wiegand, portfolio manager at U.S. Bank Private Wealth Management, referring to brief relief rallies in stocks over the past month that faded. “A lot of Washington-centric worries are still present.”
The blue-chip index climbed 1,086 points, or 5%, to 22878, its largest one-day percentage gain since March 2009. The S&P 500 added 5%, led by the consumer-discretionary and technology groups that powered the index higher for much of the year. The tech-heavy Nasdaq Composite rose 5.8%.
The Trump administration on Wednesday continued its bid to try to stem the recent volatility. Kevin Hassett, chairman of President Trump’s Council of Economic Advisers, said Federal Reserve Chairman Jerome Powell is “100%” secure in his position, despite Mr. Trump’s repeated criticism of the Fed and Mr. Powell.
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