USA stocks head sharply lower a day after Dow's record gain

USA stocks head sharply lower a day after Dow's record gain

USA stocks head sharply lower a day after Dow's record gain

All but one member of the S&P 500 finished in the green, the Dow Jones Industrial Average jumped more than 1,050 points for its biggest-ever point gain and the Nasdaq 100 rallied 6 per cent in a surge last seen in March 2009.

The Dow Jones Industrial average gained 223 points or 1 percent to 22,013. The S&P 500 climbed 116.60 points, or 4.96 percent, to 2,467.70. The tech-heavy Nasdaq gained 361.44 points, or 5.8 percent, to 6,554.36.

Stock markets in Asia were mixed on Wednesday.

"You're watching the market wrestle with, 'Ok, are we within a couple percent off the bottom, or does the community think there's another 20 percent lower?'" said Billy Huzar, client investment strategist at J.P. Morgan Private Bank. Amazon led the gain, with a 7% surge sparked by record holiday sales. Visa added 3 percent to $125.32, while Mastercard gained 3.5 percent to $180.82. Korean shares tumbled after a holiday, and Shanghai stocks fell for a second day. -China trade dispute and higher interest rates would slow the economy, hurting corporate profits.

The plunge in stocks on Monday stateside came after Mnuchin held calls with CEOs of major US banks last weekend and issued a statement saying, "The banks all confirmed ample liquidity is available for lending to consumer and business markets".

Stocks had taken a beating recently on lingering worries about the economy and caution over persisting political uncertainties, as a partial federal government shutdown lingers and President Trump's continues his hostile stance toward the Federal Reserve.

Even shares of department store JCPenney (JCP), which dipped below $1 for the first time, ended higher on the day.

Stocks are down sharply, unable to build on the prior day's strong performance, as Wall Street stumbles toward what could be its steepest annual loss since the financial crisis. The S&P 500 index soared about 5 percent.

Bond prices fell. The yield on the 10-year Treasury note rose to 2.79 percent from 2.75 percent late Monday.

Advancing issues outnumbered declining ones on the NYSE by a 4.84-to-1 ratio; on Nasdaq, a 3.80-to-1 ratio favoured advancers.

Technology companies, a big driver of the market's gains before things deteriorated in October, rebounded after being down most of the day. By the close, the Dow, S&P 500 and Nasdaq had notched their largest daily percentage gains in almost a decade.

The stagnation in the progress of resolving the trade war between the US and China supported by the Federal Reserve's increasing interest rate have continued to take a toll on the global economy and major stock markets in leading regions such as Japan, South Korea, and China. Benchmark Brent crude increased more than 8.5 percent to more than $54 per barrel.

CURRENCY: The dollar declined to 110.58 yen from Thursday's 111.01 yen.

In Europe, the benchmark Euro Stoxx 50 lost 1.1%. London's FTSE was little changed, Germany's DAX fell 0.7 percent and France's CAC was up 0.6 percent. The Dow rose for the first time in a single trading session of more than 1000 points.

The Russell 2000 is up 39.73 points, or 3.1 percent.

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