Dow plunges a day after historic 1,000-point rally

The Dow Jones industrial average roared more than 1,000 points in late afternoon as stocks snapped a four-day losing streak that had placed the 10-year bull market on the edge of death on Monday.

Futures of both the Dow Jones Industrial Average and the S&P 500, which were recently flirting with bear territory, plunged at least 1.4% in early morning NY trading on Thursday. The Nasdaq Composite Index advanced 361.44 points, or 5.84 percent, to 6,554.36. The S&P 500's year-to-date loss is a smidgen higher.

"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.

Markets were roiled ahead f the Chrismas break due to a number of political headlines taking the limelight.

The Federal Reserve's decision to boost interest rates, concerns about slower global growth, and a partial USA government shutdown have caused unease among investors, leading to a sharp drop in us stock prices.

USA stocks shake off slide with late-afternoon rally
Other major indices including the S&P 500 and Nasdaq also rebounded after a tumultuous session on Christmas Eve. Amazon (AMZN), Facebook (FB), Alphabet (GOOGL), Netflix (NFLX) and Apple ( AAPL ) all fell between 1% and 3%.

Earlier Wednesday, White House economic adviser Kevin Hassett said Trump was satisfied with Mnuchin's performance and that Fed Chair Jerome Powell's job is "100 percent" safe. Microsoft rose 3 percent to $96.89.

"Markets are becoming more rattled by criticism of the Fed", said Kristina Hooper, Invesco chief global market strategist.

Erik Nielsen, the chief economist at UniCredit Bank in London, went as far to say during an interview with the Wall Street Journal that the volatility in USA markets is "turbocharged" by the abrupt policies implemented by the government, and the recent downturn of the market could lead the US into a full-blown recession by 2020.

Mnuchin on Monday held a call with USA regulators to discuss plunging US stock markets. Energy companies fell along with the price of oil.

Traders work at the New York Stock Exchange in New York, the United States, Dec. 26, 2018.

Oil rebounds from steep slide but growth fears still weigh
President Donald Trump said on Tuesday that shutdown could last until his demand for U.S. -Mexico border wall money is met. The fourth-quarter price decline is likely to cause producers to throttle back on their output, he said.

A Mastercard report that sales during the U.S. holiday shopping season rose 5.1pc to over $850bn in 2018, the strongest in the past six years, helped stocks, as did the higher crude prices. Meanwhile, consumers continued to spend on home improvements, pushing holiday sales in that category up 9%. The index is still clocking its biggest percentage drop in any December since the Great Depression and roughly three-quarters of its stocks are in bear market. Also, mortgage rates have come down recently, but they still remain higher than they were a couple years ago.

Ten of the S&P's 11 sectors are in correction coming into Wednesday, although all were higher in early trades.

The decline in oil prices weighed on energy stocks.

Sales in the 2018 USA holiday shopping season rose 5.1 percent to over $850 billion, the strongest in six years, according to a Mastercard report. The Dow sank more than 2 percent, then recovered almost all of the day's losses, before again falling more than 2 percent. Korean shares tumbled after a holiday, and Shanghai stocks fell for a second day.

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