Wall Street notches best day in 10 years in holiday rebound

Jermaine Castillo
December 28, 2018

The Dow Jones Industrial Average slumped about 300 points early today, a day after notching its biggest-ever point gain, as the market endures a bout of volatility to end what has been a topsy-turvy year.

Wall Street closed up yesterday: The Dow Jones Industrial Average gained 5 per cent to close at 22878, the S&P 500 also added 5 per cent to close at 2468 and the NASDAQ added 5.8 per cent to close at 6554.

The tech-heavy Nasdaq lost 153 points, or 2.3 percent, to 6,401.

Monday saw the Dow fall more than 2 percent early in the day, before it bounced back to recover almost all of its losses - before falling again to end the day down almost 3 percent. Mastercard and Amazon were among those reporting Wednesday that 2018 saw top holiday retail sales numbers. The S&P 500 also soared 4.9 percent.

Markets were roiled ahead f the Chrismas break due to a number of political headlines taking the limelight.

"Yes, of course, 100 percent", said Hassett, the chairman of the president's Council of Economic Advisers, when asked by reporters at the White House if Powell's job is safe.

Ousted Pak PM Nawaz Sharif shifted to Kot Lakhpat jail in Lahore
The former Pakistan Prime Minister had arrived in Islamabad on Sunday from Lahore ahead of the verdict. However, the trio was released in September by the Islamabad High Court owing to lack of evidence.

With the path finding the U.S. index off 20 per cent since its peak and America officially in a bear market, Japan quickly faltered.

There were also renewed concerns in Italy, where troubled lender Banca Carige was denied a cash call by its largest shareholder, pushing its shares down 12.5 percent.

President Trump's criticism of the Fed and Powell has shaken Wall Street as it weathers its worst December in history.

On Monday, Trump tweeted another critical volley about the central bank's policy, rattling markets over the possibility the White House might interfere with the traditionally independent Federal Reserve.

Even so, traders have been jittery this autumn over signs that the global economy is slowing, the escalating US trade dispute with China and another interest rate increase by the Fed.

However, Chinese stocks were lower with the Shanghai Composite index falling 0.6 percent, marking its lowest close since November 2014, while the blue-chip CSI300 was down 0.4 percent. It's looking for a reason to gain a little more confidence.

U.S. says 2nd Guatemalan child dies in immigration custody
Felipe and his father were detained by CBP for about a week, an unusually long time that the agency did not fully explain Tuesday. Because there was no EMT present, agents made a decision to transport Felipe and his father to the same hospital in Alamogordo.

The International Monetary Fund expects USA economic growth to slow to 2.5 percent next year from 2.9 percent in 2018. But such gains would come with that one big catch.

Other U.S. indexes fell too. Marathon Petroleum rose 4.8 per cent to $56.93.

The US dollar was stronger versus its major peers and Treasuries fell.

Weighing on sentiment was President Donald Trump's comment that he was prepared to wait as long as it takes to get funding for his US-Mexico border wall, a demand that has triggered a partial shutdown of the federal government that is now in its fifth day.

The Dow has either gained or lost more than 350 points in seven of the past eight trading sessions. The euro strengthened to $1.1444 from $1.1351. Shares fell in Taiwan, Singapore and Indonesia, but rose in Thailand.

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Further east, the New England Patriots completed a ideal season at home - winning their 10th consecutive AFC East title. The Baltimore Ravens have a half-game lead over the Pittsburgh Steelers with one game left on the schedule.

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