Dow has single biggest one day gain, soars 1000+ points

CNN's Alison Kosik reports.

Posted: Dec 28, 2018 6:10 AM
Updated: Dec 28, 2018 6:30 AM

Stock markets staged a miraculous comeback Wednesday following their worst-ever Christmas Eve. The Dow posted its biggest daily point gain ever.

The Dow rose 1,086 points, gaining 5%. The S&P 500 also soared 5%, and the Nasdaq was up 5.8%, pulling out of bear market territory.

The day marked the biggest percentage gain for all three indices since March 2009.

"Investors went bargain shopping the day after Christmas, where stocks just got too cheap relative to earnings, future earnings, any reasonable assessment of earnings," said Chris Rupkey, managing director of MUFG. "The coast is clear, back up the truck, investors are saying enough already, the world is not ending."

Stocks rose higher despite virtually no news — which may have been a catalyst in its own right. Thin trading and a lack of big news often send stocks higher in the last week of December.

President Donald Trump did not tweet until late in market hours Wednesday. Shortly after 2 pm ET, the White House announced Trump and the first lady traveled to Iraq on Wednesday. Recently, Trump has unsettled markets by signaling the potential firing of Federal Reserve Chairman Jerome Powell and a trade war escalation.

All but one stock in the S&P 500 rose Wednesday. Newmont Mining Corp (NEM), which fell 0.1%, was the sole loser. Newmont was the S&P 500's biggest gainer on Monday after gold prices rose.

Tech stocks led the rally. Amazon soared 9.5%, Facebook (FB), Netflix (NFLX) rose 8%, Apple (AAPL) jumped 7% and Alphabet (GOOGL) was up 6%.

Energy stocks were close behind, led by Marathon Oil (MRO), which surged 11.9% Wednesday. Hess (HES) was up 11%.

Consumer product stocks also rose sharply. Kohl's (KSS) was up 10.3% and Nike (NKE) rose 7.2%. Mastercard reported that the American retail industry had its best holiday season sales in six years. Amazon (AMZN) reported that it had a robust holiday period. That suggests rising wages and lower gas prices are helping boost consumer spending — the biggest contributor in America's GDP.

Even shares of department store JCPenney (JCP), which dipped below $1 for the first time, ended higher on the day. And Ford (F) stock, which hit a nine-year low earlier in the day, ended slightly higher.

One good day isn't a trend

Wednesday was a respite from a very rough month for investors.

Even after Wednesday's rally, the S&P 500 remains close to entering a bear market, which would end the longest bull market in history. This month is still on pace for the worst December since 1931, according to S&P Global Indices.

A partial government shutdown, Treasury Secretary Steven Mnuchin's questions about banks' health and signals that President Donald Trump could fire Federal Reserve Chairman Jerome Powell upset markets on Monday, sending the Dow down 653 points.

After markets tanked on Christmas Eve, Trump said Tuesday that he remains confident in Mnuchin, but he renewed his criticism of the Fed, accusing it of hiking rates too fast.

Those doubts come of top of worries about how sharply the US economy might lose steam next year.

The only certain thing about the market this month is uncertainty. The slightest bit of bad news can turn a rally into a rout.

Asian stocks rattled

European markets were closed Wednesday. In Asia, Japan's Nikkei swung between gains and losses before closing nearly 1% higher. The shaky trading followed a 5% plunge on Christmas Day that dragged the Japanese index into a bear market. In China, the Shanghai Composite shed 0.3% on Wednesday.

Markets have been rattled in recent days by fears of slowing economic growth, exacerbated by some unsettling moves from Washington.

The turmoil in Washington is making traders in other countries fret about the stewardship of the world's biggest economy.

Global investors have a laundry list of worries, including China's slowing economy, the Trump administration's trade war with China and the unpredictability surrounding Brexit.

"There's a lot of uncertainty, and that's one of the biggest things that the market doesn't like," Andrew Sullivan, a Hong Kong-based market economist, told CNN.

Mississippi Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 16560

Reported Deaths: 794
CountyConfirmedDeaths
Hinds107426
Madison76728
Lauderdale75968
Neshoba72844
Jones70133
Scott66312
Forrest59539
DeSoto57510
Rankin4569
Leake45212
Holmes44330
Copiah3294
Jackson31415
Attala31118
Yazoo2964
Newton2884
Lincoln28031
Leflore27736
Oktibbeha27314
Harrison2697
Monroe26925
Wayne2623
Lamar2505
Lowndes2479
Pearl River21231
Pike20411
Adams20316
Washington1987
Warren19610
Lee1948
Noxubee1936
Covington1792
Bolivar16911
Jasper1674
Clarke15619
Smith15511
Kemper15511
Lafayette1544
Chickasaw14014
Coahoma1314
Clay1254
Winston1241
Carroll11911
Marion1169
Claiborne1155
Lawrence1071
Grenada1074
Simpson1040
Yalobusha1046
Sunflower923
Tate911
Hancock9012
Union897
Itawamba897
Marshall873
Wilkinson859
Panola843
Montgomery841
Webster844
Jefferson Davis823
Tippah7611
Calhoun674
Amite661
Walthall640
Humphreys637
Tunica583
Prentiss533
Perry513
Choctaw502
Pontotoc473
Jefferson421
Tishomingo360
Greene331
Stone320
Quitman320
Tallahatchie301
George292
Franklin292
Alcorn191
Benton140
Sharkey70
Unassigned00

Alabama Coronavirus Cases

Confirmed Cases: 18766

Reported Deaths: 651
CountyConfirmedDeaths
Mobile2321118
Jefferson1901104
Montgomery185843
Tuscaloosa83616
Marshall7089
Franklin5858
Lee56234
Shelby52819
Tallapoosa43466
Butler42118
Walker3862
Elmore3749
Chambers36026
Madison3534
Unassigned3062
Morgan3021
Baldwin2939
Dallas2923
Lowndes26512
Etowah26312
DeKalb2573
Autauga2415
Coffee2391
Sumter2287
Houston2265
Bullock2176
Pike2120
Colbert1902
Hale1859
Russell1810
Barbour1771
Marengo1756
Lauderdale1722
Calhoun1673
Wilcox1577
Choctaw15310
Cullman1521
Clarke1492
St. Clair1351
Randolph1287
Dale1240
Marion12411
Pickens1205
Talladega1195
Limestone1080
Chilton1071
Greene954
Macon934
Winston910
Jackson833
Covington821
Henry822
Crenshaw783
Bibb761
Escambia753
Washington736
Blount631
Lawrence510
Monroe462
Geneva440
Perry430
Conecuh411
Coosa401
Cherokee383
Clay282
Lamar280
Fayette160
Cleburne151
Tupelo
Few Clouds
75° wxIcon
Hi: 84° Lo: 72°
Feels Like: 75°
Columbus
Clear
72° wxIcon
Hi: 86° Lo: 72°
Feels Like: 72°
Oxford
Broken Clouds
72° wxIcon
Hi: 82° Lo: 69°
Feels Like: 72°
Starkville
Clear
68° wxIcon
Hi: 84° Lo: 68°
Feels Like: 68°
WTVA Radar
WTVA Temperatures
WTVA Severe Weather