Markets full of angst as Wall Street returns from Christmas break

Markets full of angst as Wall Street returns from Christmas break

Markets full of angst as Wall Street returns from Christmas break

The Dow gained 1,086.25 points on the day's trading - a rise of 4.98 percent - to close at 23,878.45 on Wednesday. The Nasdaq Composite COMP, +5.84% rose around 361 points, or 5.8%, to finish around 6,554.

"It was probably a pretty good retail-oriented holiday and that probably has a lot to do with what's happening today", said Kim Forrest, a senior portfolio manager at Fort Pitt Capital Group. The S&P 500 added 21 points to 2,488.

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

Trump also said the U.S. government shutdown, now in its fifth day, would last until his demand for funds to build a wall on the U.S. -Mexico border is met.

The market apparently got a lift Wednesday when Kevin Hassett, chairman of the White House Council of Economic Advisers, said in an interview with The Wall Street Journal that the Fed chairman is in no danger of being fired. Investors were reassured by an official signal that President Donald Trump, who has piled criticism of the Fed on Twitter, will not try to oust chairman Jerome Powell. He said that call, meant to assure, may have induced panic in the markets.

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.

Overseas, major indexes in Europe closed lower while markets in Asia mostly rose.

Wall Street notches best day in 10 years in holiday rebound
Wall Street, Asian markets see dramatic rebound

Everyone on Wall Street knows strong rallies are common in troubled times.

USA stocks had plummeted before Christmas after President Donald Trump anxious investors by criticizing the U.S. central bank, but strong holiday sales helped relieve concerns about the state of the USA economy.

Erik Nielsen, the chief economist at UniCredit Bank in London, went as far to say during an interview with the Wall Street Journal that the volatility in USA markets is "turbocharged" by the abrupt policies implemented by the government, and the recent downturn of the market could lead the US into a full-blown recession by 2020. That would mark the end to the longest bull market for stocks in modern history after almost 10 years. Advanced Micro Devices lost 6 percent to $16.83. Eastern Time. The Dow slid 585 points, or 2.6 percent, to 22,292.

"The FTSE 100 is treating a 5.0-per cent surge in America's S&P 500 benchmark with a good degree of caution and it is easy to see why, even if that was the eighteenth biggest single-day gain in the United States index since 1970", said Mould. Facebook and Netflix also climbed more than 8 percent. Brent crude, used to price global oils, lost 4.2 percent to $52.16 a barrel in London.

CURRENCIES: The dollar eased to 110.90 yen from 111.37 yen late Wednesday. The euro weakened to $1.1387 from $1.1404.

Markets have been roiled over the last three months on worries of trade tensions between the USA and China, fears of a global economic slowdown, and the Federal Reserve's rate-hiking path. The Hang Seng index fell 0.7 percent and Australia's S&P-ASX 200 jumped 1.9 percent.

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