Stock markets staged a miraculous comeback Wednesday following their worst-ever Christmas Eve. The Dow posted its biggest daily point gain ever.
(CNN) — Stock markets staged a miraculous comeback Wednesday following their worst-ever Christmas Eve. The Dow posted its biggest daily point gain ever.
The Dow rose 1,086 points, gaining 5%. The S&P 500 also soared 5%, and the Nasdaq was up 5.8%, pulling out of bear market territory.
The day marked the biggest percentage gain for all three indices since March 2009.
“Investors went bargain shopping the day after Christmas, where stocks just got too cheap relative to earnings, future earnings, any reasonable assessment of earnings,” said Chris Rupkey, managing director of MUFG. “The coast is clear, back up the truck, investors are saying enough already, the world is not ending.”
Stocks rose higher despite virtually no news — which may have been a catalyst in its own right. Thin trading and a lack of big news often send stocks higher in the last week of December.
President Donald Trump did not tweet until late in market hours Wednesday. Shortly after 2 pm ET, the White House announced Trump and the first lady traveled to Iraq on Wednesday. Recently, Trump has unsettled markets by signaling the potential firing of Federal Reserve Chairman Jerome Powell and a trade war escalation.
All but one stock in the S&P 500 rose Wednesday.
