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.
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