Wall Street indexes ended their best trading session in nearly ten years, with Dow Jones Industrial Average recorded its biggest daily growth in history. The rally in the retail and energy sectors helped Wall Street to compensate some of the big losses in the previous sessions.
The blue-chip index Dow Jones Industrial Average added 1,086 points, or 4.98%, to its value, reaching a level of 22,878.45 points. This is also its biggest increase since March 23, 2009, when the index jumped by 5.8%. The broader S&P 500 rose by 4.96% to 2,467.70 points, its best day since March 2009. The technology index Nasdaq Composite advanced by 5.84% to 6,554.35 points and also achieved its best session since March 23, 2009.
The retail companies were among the best performing on Wednesday, with the SPDR S%P Retail ETF jumping by 4.4%. Wayfair, Kohl’s and Dollar General rose by more than 6%. A Mastercard report showed that retailers have achieved their best sales in the holiday season for six years. The stock price of Amazon jumped by 7.3% after the company announced that it had sold a record number of goods in the holiday season.
The stock of energy companies also rose after the price of US WTI crude rose by more than 8%. Marathon Oil and Hess performed best in the energy sector, adding 7.6% and 6.9%, respectively.
Major sales on Monday led to a fall in main indexes by more than 2% and the S&P 500 entered in a bearish market.
Earlier this week, the US President Donald Trump once again criticized the Federal Reserve, saying the central bank was “the only problem in our economy”. On Tuesday, Donald Trump said the Fed “raises interest rates too fast because it believes the economy is very good”. This year, the US president is critical to the Federal Reserve’s monetary policy. The central bank raised its benchmark interest rate four times since the beginning of the year.
All this is happening against the continued paralysis of the federal government that began last week. Trump’s administration and congressional leaders are in a standstill because of financing a wall along the US-Mexico border. The administration says the wall is important for national security and its opponents note that it will not solve the problems with the immigrants.
On the bond markets, the yields on 10-year and 30-year US Treasuries remain unchanged at 2.811% and 3.068%, respectively.
On the forex markets, the dollar index, which measures the value of the greenback against a basket of six major currencies, added 0.45% to its value to 96.99%. The Euro fell by 0.08% against the US dollar to a level of 1.1351 USD. Compared to the yen, the dollar rose by 1.05% to a level of 111.33 JPY.
On the commodity markets, the crude oil has achieved its strongest daily growth for over two years, partly offsetting the big losses that pushed the price of oil to its lowest level since 2017.
The WTI and Brent varieties grew by about 8%, the largest daily increase since November 30, 2016, when the OPEC signed the agreement to reduce the yield. The futures on US light crude WTI ended Wednesday’s session with a rise of 3.69 USD to 46.22 USD per barrel. The contracts on the Brent variety added 4 USD to its value, reaching 54.47 USD per barrel.
The futures on gold rose by 0.1% to 1,273 USD per ounce.