Dow futures are pointing to yet another decline at the open
- Author: Wendy Palmer Dec 29, 2018,
Dec 29, 2018, 0:50
Following a 600 point decline or 2.9%, in a holiday-shortened session on Monday, the Dow Jones Industrial Average spiked with a bullish surge on Wall Street, recovering all of its pre-Christmas Day sell-off which was the worst Christmas Eve sell-off in history on Wall Street in history.
The day marked the biggest percentage gain for all three indices since March 2009.
Traders work at the New York Stock Exchange in New York, the United States, Dec. 26, 2018.
Stocks are looking to stop one of the most miserable Decembers on record, as a host of headwinds combined to drag down America's benchmark index. The S&P 500 held 0.5 percent higher after sliding more than 2 percent.
The Dow Jones Industrial Average fell 249.39 points, or 1.09 per cent, at the open to 22,629.06.
The S&P and the Dow have fallen about 12 percent for the year, while the Nasdaq has shed 10 percent, with just four more trading sessions left to wrap up the year. Shares of department store JCPenney (JCP) dipped below $1 for the first time and Ford (F) stock was down as much as 9% this week.
Stocks are falling sharply Thursday, making the prior day's strong performance seem like an aberration, as Wall Street stumbles toward what could be its worst December since the Great Depression.
Markets have been marked by turbulence in recent weeks as the US government shutdown, higher USA interest rates and the U.S.
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.
Financial markets in Australia, Hong Kong were closed for a public holiday, along with bourses in London, Paris and Frankfurt. The Nasdaq was up about 4.8%, pulling out bear market territory.
On Dec. 19, the USA central bank raised short-term interest rates by 25 basis points to a range of 2.25 percent to 2.50 percent, in line with market expectations. Goldman Sachs declined 1.9 per cent to $159.82 as the yield on the 10-year Treasury fell to 2.76 per cent from 2.79 per cent late Wednesday.
Other major indices including the S&P 500 and Nasdaq also rebounded after a tumultuous session on Christmas Eve. Benchmark Brent crude increased more than 8.5 percent to more than $54 per barrel.
The dollar strengthened to 111.36 yen from 110.41 yen on Monday. The Nasdaq Composite Index slid 2.2 percent. The euro weakened to $1.1387 from $1.1404.
Gold edged up 0.1 percent to $1,273 an ounce and silver gained 2 percent to $15.12 an ounce. Copper gained 1.5 percent to $2.70 a pound. Shares fell in Taiwan, Singapore and Indonesia but rose in Thailand.
In Asian markets, the Nikkei 225 index rebounded 3.9 per cent, while South Korea's Kospi was little changed.