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Stock Market Bounces Back from Tough Times With Biggest Point Gain in History

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Stock markets staged a miraculous comeback Wednesday following their worst-ever Christmas Eve. The Dow posted its biggest daily point gain ever, according to a CNN report.

The Dow rose 1,086 points, gaining 5%. The S&P 500 also soared and the Nasdaq was up 5.8%, pulling out of bear market territory.

The Washington Post reported that Wednesday’s 4.96 percent climb in the S&P is the best Dec. 26th on record, replacing the 3.06 percent gain record set in 1973, according to S&P Dow Jones Indices.

It was the largest daily percentage gain for market since March 2009.

Both the S&P and the Nasdaq enjoyed their best day in three years. But despite the big gains, all three indexes are still in the loss column as the year-end approaches.

WaPo reported that the markets were stuttering through the early trading Wednesday morning, but they became more sure-footed after White House economic adviser Kevin Hassett assured reporters that Federal Reserve Chairman Jerome H. Powell’s job is “100 percent safe.” The market started surging after his remarks.

“Yes, of course, 100 percent,” said Hassett, the chairman of the president’s Council of Economic Advisers, when asked by reporters at the White House if Powell’s job is safe. “Absolutely.”

The WaPo reported that Hassett, in an appearance on Fox Business Network, also said President Trump “is very happy” with Treasury Secretary Steven Mnuchin. Mnuchin created worry last weekend when he phoned the chief executives of U.S. banks regarding the economy.

“Investors went bargain shopping the day after Christmas, where stocks just got too cheap relative to earnings, future earnings, any reasonable assessment of earnings,” Chris Rupkey, managing director of MUFG told CNN. “The coast is clear, back up the truck, investors are saying enough already, the world is not ending.”

Stocks rose higher despite virtually no news — which may have been a catalyst in its own right. Thin trading and a lack of big news often send stocks higher in the last week of December.

President Trump did not tweet until late in market hours Wednesday, according to a CNN report. Recently, Trump has unsettled markets by signaling the potential firing of Federal Reserve Chairman Jerome Powell and a trade war escalation.

All but one stock in the S&P 500 rose Wednesday, according to a CNN report.  Newmont Mining Corp (NEM), which fell 0.1%, was the sole loser. Newmont was the S&P 500’s biggest gainer on Monday after gold prices rose.

Tech stocks led the rally. Amazon soared 9.5%, Facebook (FB), Netflix (NFLX) rose 8%, Apple (AAPL) jumped 7% and Alphabet (GOOGL) was up 6%.

Energy stocks were close behind, led by Marathon Oil (MRO), which surged 11.9% Wednesday. Hess (HES) was up 11%.

Consumer product stocks also rose sharply. Kohl’s (KSS) was up 10.3% and Nike (NKE) rose 7.2%. Mastercard reported that the American retail industry had its best holiday season sales in six years. Amazon (AMZN) reported that it had a robust holiday period. That suggests rising wages and lower gas prices are helping boost consumer spending — the biggest contributor in America’s GDP.

Even shares of department store JCPenney (JCP), which dipped below $1 for the first time, ended higher on the day. And Ford (F) stock, which hit a nine-year low earlier in the day, ended slightly higher.

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