Another day of wild trading swings saw Wall Street closer higher for the first time in four days – the Dow jumped 567 points or 2.3% at the end in its biggest one day rise since President Trump was elected in November 2016.
But that was after trading in an 1,100 point range across the session – it opened more than 500 points lower, rose strongly, fell again and then surged in the final two hours of trading. Trading again was frenetic and chaotic as computerised programs (from passive investors dealing in ETF’s) drove prices lower, then higher, lower and then the final charge at the end.
US bond yields rebounded, rising to just under 2.80% by the close for the 10 year security – it added two points in the final half hour of the session. It had earlier fallen to 2.67% in electronic trading in Asia.
The market’s early slide took it briefly into correction territory (a fall of 10% or more from its most recent peak), but by the close it was back in the green for the year to date.
The Dow Jones Industrial Average ended up 567 points, or 2.3%, at 24,913, a day after having recorded its biggest one-day point drop ever of 1,175 points; the S&P 500 was up 1.7% to 2,695 and the Nasdaq Composite jumped 2.1% to 7,155.
The sharp late-day reversal on Tuesday pulled all three major indices back into positive territory for the year, but the 567 point gain for the Dow is less than a third of the 1,800 point plus plunge on Friday and Monday.
Local futures in Australia have our market opening up around 100 points this morning (see separate story).
