The main indexes at Wall Street yesterday increased by more than 5%, the strongest for nearly 10 years.
After its worst Christmas night ever, US stocks yesterday had a spectacular reversal. DJIA index raised a record of 1,086 points, equivalent to 5%. Almost all S&P 500 stocks went up, dragging this index up 5%. Nasdaq rose the most with 5.8%, escaping the market down. This was also the largest percentage increase of all three indexes since March 2009.
"Investors bought in and made a profit after Christmas day, when stock prices became too cheap compared to profits and forecast profits," said Chris Rupkey - MUFG CEO. Prices increase almost without any new news. Thin trading volume and lack of big news often pushed stocks up in the last week of the year.
Staff traded on the New York Stock Exchange yesterday. Photo: Reuters
US President Donald Trump yesterday also had no posts on his page until near the end of the session. Recently, he made investors worried about the possibility of sacking the Federal Reserve (Fed) president and escalating trade war.
Technology stocks led the uptrend yesterday. Amazon closed with gains of 9.5%. Facebook and Netflix increased by 8%. Apple's increase was 7% and Alphabet’s was 6%. Energy and consumer goods also increased at a two-digit rate.
Yesterday was a rare rally after a month of staggering with US stocks. However, S&P 500 Index is still close to the down market. This may also be the worst December for Wall Street since 1931.
Earlier this week, partial closure of the US Government, sudden check-up of banks by US Treasury Secretary - Steven Mnuchin and possibility of US President - Donald Trump sacked Fed Chairman - Jerome Powell made the market plunge. Investors also worried that the US economy will lose its uptrend in the coming year.