Wednesday was a huge day for the stock market. They posted their best day in almost a decade on Boxing Day. The Dow Jones Industrial Average is calling the rally the most significant 1-day point increase in recent history. Energy and retail share gains helped Wall Street recover after a dismal previous session.
Dow closed out with an increase of 1086 points, or almost 5% at 22,878 for 30 stocks. Boxing Day’s bump is the most significant market increase since March 23, 2009, when it rose 5.8%.
Retailers were the best performers on Wednesday and SPDR S&P Retail ETF jumped 4.7%. Dollar General, Wayfair and Kohl’s all gained more than 7%. Data shows this holiday season was the strongest in six years. Retailers are celebrating the success. Amazon broke a 4-day losing streak and jumped 9.45%. The company and its accessible products were a hit this holiday season.
American crude oil jumped 8% and energy stocks increased with it. Hess and Marathon Oil were among the top performers in the sector. They gained a respective 11% and 11.9%.
Monday was a brutal day for the market. A sharp sell-off sent all major indexes down more than 2%. S&P felt the brunt of it with a plunge into a bear market. This Christmas Eve was the worst in history. The S&P set a record high in September but was since down 20.06% the day before Christmas. The markets were closed Christmas Day and rebounded on Wednesday.
The market plunge came after Steven Munchin, Treasury Secretary, had numerous calls with major U.S. bank CEOs. Since the conversation and drop, they released a statement: “The banks have confirmed all the ample liquidity to be available for lending to business and consumer markets.”
The Monday drop could also have been influenced by the continued partial Federal Government shutdown. Further issues were prompted by President Trump’s Twitter statements stating the Feds are “the only problem our economy has”. He also criticized the overnight central bank rate hikes. He stated, “raising the interest rates too fast as they have thought the economy is good.”