Dow drops 400 points following its worst week in a decade

Wall Street notches best day in 10 years in holiday rebound

The Russell 2000 index of smaller-company stocks picked up 11 points, or 0.9 percent, 1,278.

Analysts noted that although Wednesday's run-up was exciting to watch, they needed more evidence of a sustainable rally given that major indices suffered their worst-ever Christmas Eve performance just three days ago. The tech-heavy Nasdaq lost 127 points, or 1.9 percent, to 6,427.

The S&P 500 - which had been on the verge of bear market territory, which is when a market falls 20% from a recent high - and Nasdaq were also up sharply.

That overshadowed positive noises from the US government on trade talks with Beijing, its efforts to temper the White House's recent broadsides against the Federal Reserve and a Mastercard Inc report that USA holiday shopping sales had risen the most in six years in 2018. Some traders have suggested that the market has gotten to the point where a short-term bounce could occur, if only for technical reasons.

Asian markets closed mixed: Tokyo's Nikkei added 0.9 per cent, Hong Kong's Hang Seng 0.4 per cent lower, and China's Shanghai Composite 0.3 per cent lower. Indeed, holiday sales increased 5.1 percent on the 2017 season to over $850 billion (€747 billion). Multiple reports said President Donald Trump is discussing how to remove Jerome Powell from his position as chairman of the Federal Reserve. The stocks saw their worst December and worst Christmas on record.

Heading into the day's session, the S&P 500 was on the verge of entering a bear market, defined as a 20 per cent drop from its peak value.

Investors started the day selling off stocks after Treasury Secretary Steven Mnuchin shared a statement Sunday, saying he held individual calls with the CEOs of the nation's six largest banks who assured him they had "ample liquidity" to lend to consumers and businesses.

"Thanks to the sharp rebound in United States shares, it is increasingly possible that Japanese stocks will end the year on a bullish note", said Yoshihiro Ito, chief strategist of Okasan Online Securities, using a finance term to describe when prices are rising. However, the Fed failed to signal that it was easing off its tighter policy approach as much as markets had expected. Noble Energy slid 4.1 percent to $18.31.

Political turmoil this week has added to concerns about a cocktail of factors - including slowing growth, trade tensions, and more expensive refinancing after years of stimulus - that have weighed on global markets in recent months. Brent crude, used to price global oils, gained 7.9 per cent to $54.47 a barrel in London.

The offshore yuan was little changed after China released new rules promising to treat all companies equally, the latest positive step on the trade and investment front since further US and Chinese tariff hikes were paused.

Investors also bought yen, pushing the dollar 0.4 per cent lower versus the Japanese currency and forcing it to cede some of its 1-per-cent overnight rise. Amazon (AMZN), Facebook (FB), Alphabet (GOOGL), Netflix (NFLX) and Apple (AAPL) all fell about 2%. The euro rose to $1.1397 from $1.1353.

Related News:



Most liked

United States to coordinate troop withdrawal from Syria with Turkey
A delegation of the Syrian Democratic Council, the political wing of SDF, arrived in Russian Federation last week for talks. France is a member of the global coalition against IS led by the USA against jihadists in Syria and Iraq.

Prince George and Princess Charlotte break royal tradition on Christmas
The Duchess gushed about becoming a mum for the first time, admitting that she was incredibly excited. Meghan and Harry were all smiles as they walked alongside William and Kate .

Man Utd caretaker boss will 'get players enjoying football' again
A club statement read: " Manchester United announces that manager Jose Mourinho has left the club with immediate effect". Solskjaer then went on to reminisce his debut appearance at Old Trafford and how the place quickly became home for him.

Nasdaq in bear market, first of the three major USA indexes
The Dow was down 1,655 points or 6.9 percent for the week, the largest weekly loss since October 2008. That sent the price of gold higher, and it gained 0.9 percent to $1,267.9 an ounce.

Partial government shutdown has minimal impact locally
In the Transportation Department, thousands of air traffic controllers will keep planes moving during the busy holiday season. Food stamps and subsidized lunches will continue to be provided, though an extended shutdown could change that; the U.S.

Tobacco Giant Altria Takes $13 Billion Stake In Juul Labs
Food and Drug Administration is ramping up efforts to restrict the sale of flavored e-cigarettes which appeal largely to children. Under the agreement, Altria's only entry into the e-cigarette market will be through Juul for at least six years.

China says Canadian woman being punished for working illegally
Meng has since been released on bail and is to return to court early next year for what could be an extended legal proceeding. China detained former Canadian diplomat Michael Kovrig and China-based business consultant Michael Spavor on December 10.

Trump Moves Towards Shutdown Over Wall Funding
House Majority Leader Kevin McCarthy outside the White House, said Trump wanted any spending agreement to secure the U.S. border. Right-wing radio host Rush Limbaugh expressed similar dismay at the prospect of Trump conceding on the wall.

4 things to know about Trump’s decision to withdraw from Syria
Jennifer Cafarella, a Syria expert at the Institute for the Study of War, said the withdrawal is likely to create new problems. CBS said it was told the White House had ordered the Pentagon to "begin planning for an immediate withdrawal".

Ex-Flynn business partner charged in Turkish lobbying case
Defense attorney Robert Trout told a magistrate judge that Kian is in the process of relocating from California to the D.C. area. Along with the editorial , the Flynn Intel Group produced a report on Mr Gulen and video for a documentary that was never made.

‘Laverne & Shirley’ star Penny Marshall dies at 75
Brooks praised her for making "films which celebrated humans" and for her guiding influence to young comedians and writers. But Marshall's legacy will long outlast many of her male peers, and we're truly grateful for the films she gifted to us.

Huawei launches Nova 4 with hole-punch display and 48MP rear camera
Huawei has officially lifted the veil off the Nova 4 , its new mid-range smartphone with an all-screen display. As far as front-facing camera is concerned, the Nova 4 is expected to offer a massive 25MP selfie camera.

Downing Street denies existence of secret plot for a second Brexit referendum
A Labour source has indicated the motion would be targeted at Mrs May personally, rather than the Government . May added: "Avoiding no deal is only possible if we can reach an agreement or if we abandon Brexit entirely".

UEFA Champions League Last 16 Draw: Manchester United vs FC Barcelona,
They lost their first two games in the competition, but recovered well to finish second behind Barcelona in their group. Danny Mills thinks Tottenham's Champions League last-16 tie against Borussia Dortmund is "difficult but winnable".

Chinia, Russia 'corrupt' in Africa
Between 1955 and 2006, USA aid to Africa was roughly equal to the amount of assistance provided by all other donors combined. Russia, too, he said, seeks to increase its influence in the region through "corrupt economic dealings".