CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

The Dow Jones surges more than 1 thousand points in single trading session

The Dow Jones Industrial Average surged more than 1 thousand points on Wednesday, marking the first 1-thousand-point drop in a single day’s trade.

This follows a Wall Street rebound in response to strong holiday sales data, helping to ease concerns of a weak US economy.

Wall Street saw its worst preforming Christmas Eve drop this year, with the benchmark S&P 500 getting very close to dropping into bear market territory.

US stocks have been affected since the end of the summer season because of a dire economic growth outlook and on-going US-China tensions over trade disputes.

All 11 major S&P 500 sectors ended in positive territory, with the technology sector rising 6.1% .

The S&P broke a four-session streak of declines and despite Wednesday's surge, it remained on track for its biggest monthly percentage drop since 2009.

US 2018 holiday sales post-Christmas delivered positive news, marking the strongest numbers in six years rising 5.1% from the previous year to $850 billion. The S&P 500 retailing index jumped 7.4%, while shares of Amazon climbed 9.4%.

Wall Street lifts ASX

IG Market Analyst Kyle Rodda says a lot has transpired during the Christmas period to affect the Australian markets, including immense sell-offs in certain markets, and an ample bounce in US Stocks.

'Considering the time of year, the Australian share market is more than likely to experience another session of thin trade today. Monday’s session, for example, saw volume 63.40 per cent below the 30-day average.

In saying this, though unsubstantial, Wall Street’s momentum looks likely to carry our market higher..' Mr Rodda said.

Mr Rodda says Wall Street is registering a solid day of activity on Thursday, with its three major indices up over 2-and-a-half % so far in the session.

'It’s setting up a solid day’s trading for the Asian region, and likely Europe when it re-opens tonight, on what poses as a thin albeit positive day for stocks.' Mr Rodda said.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.