Moneymoney

Thu Dec 27, 2018, 12:08 AM

Here's Why the Stock Market Just Had a Massive Rally After a Historic Loss


U.S. stocks staged one of the biggest rallies of the 9 1/2 year bull market after coming within points of seeing it end, with major indexes surging at least 4.9 percent. Crude jumped almost 10 percent.

All but one member of the S&P 500 finished in the green, the Dow Jones Industrial Average jumped more than 1,050 points for its biggest-ever point gain and the Nasdaq 100 rallied 6 percent in a surge last seen in March 2009. Small caps joined the rally with a 5 percent advance.

Consumer shares paced the rally, with Amazon jumping 9.5 percent after reporting record holiday sales. Each member of the FAANG cohort rallied at least 6.4 percent, while energy producers surged as crude powered past $46 a barrel. All 30 Dow members gained, with Nike and Apple rising more than 7 percent. Newmont Mining was the only S&P 500 member to fall.

“It was probably a pretty good retail-oriented holiday and that probably has a lot to do with what’s happening today,” said Kim Forrest, a senior portfolio manager at Fort Pitt Capital Group.

President Donald Trump said a day earlier that the rout that took stocks down 19.8 percent from a record provided a “tremendous opportunity to buy.” Investors also welcomed Kevin Hassett’s assurance that Jerome Powell’s job is “100 percent” safe. Oil’s best rally since 2016 added to the equity surge. Stocks are looking to stop one of the most miserable Decembers on record, as a host of headwinds combined to drag down America’s benchmark index.

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http://time.com/5488817/stock-market-surge-1000-points/

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