US Stocks Surge After Christmas Eve Tumble

Trump in talks to possible firing of Fed Chair Jerome Powell

Trump in talks to possible firing of Fed Chair Jerome Powell

Markets rebounded sharply Wednesday from a disastrous Christmas Eve.

The Dow Jones Industrial Average rose 5%, or more than 1,000 points, and recorded the largest daily point gain in its history.

Retail stocks, particularly Amazon, provided the biggest boost to the market.

Ten of the S&P's 11 sectors are in correction coming into Wednesday, although all were higher in early trades. The stock market's super day comes after retailers posted the best holiday shopping season in six years. They also seemed to find comfort in the words of Kevin Hassett, a top White House economic adviser, who assured reporters Wednesday the job of Federal Reserver Chairman Jerome Powell was "100 percent" safe despite numerous reports that President Donald Trump has been seeking ways to sack the central banker from his chairmanship.

The three major USA indexes all posted their biggest one-day percentage gains since March 2009, in the first day of trading following the Christmas holiday, when the market was closed.

President Donald Trump on Christmas Day hailed US companies as "the greatest in the world", adding that they present a "tremendous opportunity to buy" for investors. "Nothing new. Nothing new on the shutdown".

"They're raising interest rates too fast", he said in the Oval Office after a Christmas Day phone call with United States troops.

He denounced opposition lawmakers for denying him funding for his southern border wall and denounced them as hypocrites for criticizing his firing of Federal Bureau of Investigation chief James Comey. The routines of 800,000 federal employees are expected to be disrupted by the shutdown, but essential services will keep running. "The only problem our economy has is the Fed", he said on Twitter on Monday. "They don't have a feel for the Market, they don't understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders". Trump nominated Powell previous year to take over the Fed, but since interest rates began rising, Trump has upped his rhetoric against Powell. He remained bullish on USA companies and their prospects, insisting from the Oval Office on Tuesday: "They have record kinds of numbers". A day earlier, Trump claimed there is a buying opportunity for stocks. We have companies, the greatest in the world, and they're doing really well.

Markets in Europe, Hong Kong, Australia and South Korea were closed for Christmas. The Shanghai Composite Index ended 0.9 percent lower to 2,504.82.

"From a tactical standpoint, you can expect a reflex rally", said Canaccord Genuity equity strategist Tony Dwyer in a note released ahead of Wednesday's session. Shares fell in Taiwan, Singapore and Indonesia but rose in Thailand.

"These are incredibly tricky markets to decipher, as the outsized moves are not reflective of the current US economic landscape", said Stephen Innes, head of Asia-Pacific trading at Oanda Corp.in Singapore. Overall, U.S. consumers spent over $850 billion this holiday season, according to Mastercard.

The S&P 500 at the same time jumped by about five percent as well by closing near 2,468, reported MarketWatch.

The previous record point gain for the Dow was 936.42 on October 13, 2008, when markets were whipsawed nearly daily by developments in the financial crisis, which was then in full swing. A recent drop in gas prices has helped last-minute spending, he said.

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