Stocks lose momentum a day after Dow's record gain

Stocks lose momentum a day after Dow's record gain

Stocks lose momentum a day after Dow's record gain

Over the two sessions following that gain, the Dow dropped more than 800 points. Energy companies as well as internet and social media companies fell sharply as well.

The S&P is now down 15.8 percent since its all-time high on September 20.

Yet some analysts have argued that the stock market's weakness in December has been disproportionate to economic conditions at a time when unemployment is low and growth is still solid.

The Dow Jones Industrial Average rose 61 points to 23,199, while the S&P 500 gained 5 points to 2,493.

"You're watching the market wrestle with, 'Ok, are we within a couple percent off the bottom, or does the community think there's another 20 percent lower?'" said Billy Huzar, client investment strategist at J.P. Morgan Private Bank.

The S&P 500 is up 51.08 points, or 2.1 per cent. It is the largest single-day point gain in the history of the Dow.

The Dow Jones Industrial Average rallied by more than 1,000 points, climbing by around 1,086 points, or 5%, to end near 22,878. while the S&P 500 SPX, +4.96% advanced around 117 points, or 5%, to close near 2,468. It also was the worst Christmas Eve for the tech-heavy Nasdaq Composite and the first time the broader S&P 500 ever had more than a 1 percent drop on December 24. The Russell 2000 index of smaller-company stocks picked up 45 points, or 3.6 percent, 1,312.

The Federal Reserve's decision to boost interest rates, concerns about slower global growth, and a partial USA government shutdown have caused unease among investors, leading to a sharp drop in us stock prices.

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.

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Technology companies, a big driver of the market's gains before things deteriorated in October, slumped Thursday.

The S&P 500 is down 184.78 points, or 6.9 percent. Stock exchanges in London, Frankfurt, Hong Kong and Australia remain closed and will have to digest the recent turmoil when they reopen Thursday.

Sales in the 2018 US holiday shopping season rose 5.1 percent to over $850 billion, the strongest in six years, according to a Mastercard report.

Bond prices fell. The yield on the 10-year Treasury note rose to 2.79 per cent from 2.75 per cent late on Monday. The Nasdaq Composite Index slid 2.2 percent.

The sharp rise in Oil prices have supported the mood as well. PulteGroup climbed 4.7 percent to $25.85.

The Dow's 30 blue chips are close behind, down 4,034 points in December - about 13.63 percent - and almost 5,000 points off its September high. Crude oil prices rose.

The U.S. dollar strengthened to 111.13 yen from 110.41 yen on Monday.

In Europe, the benchmark Euro Stoxx 50 lost 1.1%. Perhaps unsurprisingly, given the closings at brick-and-mortar stores and competition from internet sales, holiday spending at department stores fell 1.3 percent.

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