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No Bear Market Just Yet; Dow Jones Skyrockets, Has Biggest Day In History

On Wednesday, stocks rebounded from their recent losses with a dizzying climb that saw the Dow Jones Industrial Average take its biggest leap in history, zooming up almost 1,100 points.

The Dow Jones Industrial Average skyrocketed 1,086 points to rest at 22,878, the S&P 500 gained 116 points, or 5%, and the Nasdaq Composite leaped 5.8% to 6,554.

CNBC noted, “Retailers were among the best performers on Wednesday, with the SPDR S&P Retail ETF (XRT) jumping 4.4 percent. Shares of Wayfair, Kohl’s and Dollar General all rose at more than 6 percent. Data released by Mastercard SpendingPulse showed retailers were having their best holiday season in six years. Amazon’s stock also jumped 7.3 percent after the company said it sold a record number of items this holiday season.”

U.S. crude oil prices soared over 8%, helping oil stocks rise.

But John Augustine, chief investment officer at Huntington Private Bank, cautioned, “We still have a ways to go. We need to have three days of moving higher into the close to stem this wave of selling.” He added that the recent plummeting stock market “is a buyer’s strike due to lack of confidence in policymakers around the world. It’s going to take a long time to recover that confidence.”

Peter Cardillo, chief market economist at Spartan Capital Securities: “With the end of the quarter, we could get a bounce in the next few days,” but “the problem is [President Donald] Trump continues to create a lot of uncertainty.”

The bear market that investors feared may have to wait, at least temporarily. Wednesday morning, before the dizzying climb, CNBC wrote:

Fears have become reality.

The S&P 500 entered bear market territory Monday, dropping just more than 20 percent from its 52-week intraday high. The Dow Jones Industrial Average and the S&P 500 are now on track for their worst December performances since the Great Depression. If history is any guide, the downturn will last about a year as bear markets have lasted 13 months on average since World World II.

As investors desperately hope for any good news — whether from the administration or the Federal Reserve — to stop the stocks from their free fall, there is still value in the market to profit from.

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