Dow Jones surges 1,100 points, Wall Street rebounds from worst-ever Christmas


The broad-based S&P 500 surged 116.59 points (4.96 per cent) to 2,467.69, while the tech-rich Nasdaq Composite Index advanced 361.44 points (5.84 per cent) to 6,554.36.

The Dow Jones industrial average surged almost 700 points in late Wednesday trades - more than offsetting the 653-point drop in Monday's shortened session that had made history as the worst-ever Christmas Eve for the blue-chip index. The put call ratio - a measure for downside protection against a stock market decline - reached the highest level since at least 2003 Thursday, pointed out SunTrust Chief Markets Strategist Keith Lerner.

The attempt at reassurance from a chief economic adviser to Trump came as Wall Street sought to pick up following its worst Christmas Eve performance on record and the partial government shutdown went through its fifth day.

Trump had already set an unfestive holiday tone in a Christmas Eve tweetstorm in which he expounded on the shutdown and his controversial withdrawal of USA troops from Syria, launching another attack on the Federal Reserve.

U.S. President Donald Trump has marked Christmas with a renewed attack on the central bank over plunging stocks, as he aired a catalogue of grievances in a downbeat gathering at the Oval Office.

He denounced opposition lawmakers for denying him funding for his southern border wall and denounced them as hypocrites for criticizing his firing of Federal Bureau of Investigation chief James Comey.

The president's Christmas criticism of the USA central bank triggered a drop in Asian equities on Tuesday.

Philip absent as royals attend Christmas Day church service
Kate and Meghan have been the subject of a series of media reports claiming there is a rift between the two duchesses. Last year, she became the first non-married partner to be invited to Christmas lunch at Sandringham with the Queen .

"The only problem our economy has is the Fed", the president said on Twitter. Part of Trump's frustration with Powell has been the Fed chair's announcement last week of another hike in the benchmark interest rate, which caused markets to tumble. They have record kinds of numbers. "So I think it's a tremendous opportunity to buy", Trump said, according to a report on Reuters website. "Really a great opportunity to buy".

Markets in Europe, Hong Kong and Australia were closed Wednesday for post-Christmas holidays.

White House economic adviser Kevin Hassett tried to bring some calm to the markets earlier Wednesday when he assured reporters that Federal Reserve Chairman Jerome H. Powell's job is "100 percent safe".

"These are incredibly tricky markets to decipher, as the outsized moves are not reflective of the current USA economic landscape", said Stephen Innes, head of Asia-Pacific trading at Oanda Singapore. The Nasdaq was up 4 percent and on track to wipe out Monday's losses.

Sections of fencing have been repaired along the U.S. -Mexico border but no new wall has been built, and top Senate Democrat Chuck Schumer said over the weekend the president "must abandon the wall, plain and simple" to reopen the government. Japan's Nikkei 225 fell by 5 percent to end the day at 19,155.14 points. A recent drop in gas prices has helped last-minute spending, he said. Prices have consistently climbed faster than wages, a challenge that was overcome until past year by historically low mortgage rates.

The markets have been dealing with concerns of a slowing global economy, the trade dispute with China and last week's interest rate increase - the fourth by the Federal Reserve this year.