Dow Jones Regains Some Losses, Closes Up More Than 500 Points

Dow Jones Regains Some Losses, Closes Up More Than 500 Points

Dow Jones Regains Some Losses, Closes Up More Than 500 Points

U.S. stocks have rebounded in volatile trading overnight, with major indexes up more than 1 per cent following the biggest one-day drops for the S&P 500 and the Dow in more than six years.

The S&P 500 Index gained 1.3 percent as of 3:15 p.m.

North American markets swung wildly between positive and negative territory on Tuesday in volatile trading after Wall Street's rout yesterday heightened concerns that a pull-back from record highs could lead to more heavy losses.

Neil Wilson, senior market analyst at ETX Capital in London, is anxious about the role technology is playing in the rout.

"There are still a lot of unanswered questions", Low said.

As a result, he reckons buyers are being caught out: "So far every time dip buyers come in they are being blown away - despite the fact that on a forward earnings basis stocks are looking more and more appealing". It lost 3.4 per cent.

The pullback has ended an unusually placid period for markets that saw USA indices surge to record after record on improving economic data and expectations that USA tax cuts enacted by President Donald Trump would lift earnings and pave the way for still-higher gains.

US stocks went on another bumpy ride on Wall Street, dropping sharply in early trading before recovering their losses by lunch time.

The slump began on Friday as investors anxious that creeping signs of higher inflation and interest rates could derail the USA economy along with the market's record-setting rally.

Advancing issues outnumbered decliners on the NYSE by 2,028 to 802.

Singapore's STI was down 2.7 percent.

But investors got too exuberant and stock prices ran up too much, too fast, making the market vulnerable.

The Dow Jones industrial average gained 567 points, or 2.3 per cent, recouping almost half of the 1,175-point plunge it took the day before.

Given that the stock market hasn't fallen into a bear market just yet, the pain will be relatively short-lived, and more psychologically painful than anything else.

That brought relief to markets after a global sell-off began last week.

Futures markets are pointing to a steady opening on Wall Street, with Dow futures and the broader S&P 500 futures down 0.2 percent and up 0.4 percent, respectively. That should please shareholders, until they remember that the blue-chip index shed nearly 200 points on Tuesday, hitting a 10-month low.

"It's like a kid at a child's party who, after an afternoon of cake and ice cream, eats one more cookie and that puts them over the edge", said David Kelly, the chief global strategist for JPMorgan Asset Management. The Nasdaq Composite soared 148 points to 7,115 - a 2.13 percent hike. It was a similar story on Germany's DAX, which was 3 percent lower at 12,308.

The slump began Friday as investors fretted that creeping signs of higher inflation and interest rates could derail the USA economy along with the market's record-setting rally.

As interest rates rise, the value of existing bonds falls and borrowing to invest becomes more expensive.

Shares are taking a beating in Asia after the biggest drop in the Dow Jones industrial average in six and a half years.

Elsewhere in Asia on Wednesday, Hong Kong's Hang Seng climbed 2.8%, while Australia's S&P/ASX 200 rose 1.3%, and South Korea Kospi index held steady.

The Chicago Federal Reserve's index on financial conditions, which account for the state of money, debt and stock markets as well as borrowing costs, slipped to -0.94 in the week ended January 26, which was the lowest level since August 1993 and signaling extremely easy market conditions.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.