Stocks today climbed back from their epic Christmas Eve plunge as all three indexes posted big gains.
The Dow Jones industrial average roared more than 1,050 points in late afternoon — the biggest point gain in history — as stocks snapped a four-day losing streak that had placed the 10-year bull market on the edge of death on Monday.
Wednesday’s preliminary 4.96 percent climb in the S&P is the best Dec. 26 on record, replacing the 3.06 percent gain record set in 1973.
It was the largest daily percentage gain for the market since March 2009.
“Today the market’s message is that we have nothing to fear but fear itself,” said Ed Yardeni, president of Yardeni Research. “The recent selloff reflected fears of an impending recession which were blown away today by Amazon and other retailers reporting a record holiday selling season. Santa is back.”
White House economic adviser Kevin Hassett tried to bring some calm to the markets earlier today when he 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.”
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.
President Trump’s criticism of the Fed and Powell has shaken Wall Street as it weathers its worst December in history.
The Dow was whirling between slightly negative to 200 points up in the first hours of Wednesday’s session before its early afternoon lift on the tails of surging blue chips Apple, Home Depot, Microsoft, Visa and Nike. Facebook and Amazon shares were up more than 6 percent each.
All three major indexes were on pace to snap a four-day losing streak.
The S&P 500 and technology-heavy Nasdaq Composite also bounced.
The Nasdaq was up more than 5 percent and the S&P posted a nearly 5 percent pop by closing.
Crude oil prices surged, posting their biggest increase in two years after a 30-percent plus drop since October. West Texas Intermediate crude was up nearly 10 percent at around $46 per barrel. Benchmark Brent crude increased more than 8.5 percent to more than $54 per barrel.
The post-holiday rally comes after a shortened Christmas Eve trading session left the Nasdaq deep into correction territory, and the S&P within a wisp of a correction.
The near-decade long bull market that began in March 2009 earned a reprieve on Wednesday’s rally. Consumer discretionary, energy and technology were leading the way.