US stocks have roared back to finish the day in positive territory, following steep losses earlier, as equities rebounded for a second day.
The gains come a day after the major indexes posted their biggest daily percentage increases in nearly a decade, feeding some hope that a Wall Street swoon may be coming to an end. The S&P 500’s two-day percentage gain of 5.9 per cent is the best performance for the benchmark index since late August 2015 when the market was in the midst of a downturn over a slowing China.
Even so, all three major indexes remain down more than 9 per cent for December. The S&P 500 is on track for its biggest annual percentage drop since 2008. Stocks were lower for most of Thursday’s session, with the S&P 500 dropping as much as 2.8 per cent. Strategists said such a pullback was to be expected following the huge jump on Wednesday, when the Dow Jones Industrial Average rose 1000 points for the first time.
Losses on Thursday reversed in the last hour of trading, with stocks almost across the board churning higher. All 11 sectors finished in positive territory. The Dow Jones Industrial Average rose 260.37 points, or 1.14 per cent, to 23,138.82, the S&P 500 gained 21.13 points, or 0.86 per cent, to 2488.83 and the Nasdaq Composite added 25.14 points, or 0.38 per cent, to 6579.49.
President Donald Trump said 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.
Separately, Reuters reported Trump is considering an executive order in the new year that would bar US companies from using telecommunications equipment made by China’s Huawei Technologies and ZTE. This comes as China and the US plan face-to-face consultations to resolve their trade dispute, which has rocked stock markets, along with concerns over slowing economic growth and rising interest rates.
Morning-Market-Note-Friday-28th-December