Strong holiday sales and oil prices helped boost the stock market following a rout two days earlier.
Stocks roared back on Wednesday, with the Dow surging more than 1,000 points, as investors shrugged off a rout two days earlier that had put the Standard & Poor’s 500 on the brink of a bear market.
Reports of strong retail sales during the holidays and a rally in oil prices helped to boost stocks the day after Christmas when the markets were closed. Concerns about the fate of the Federal Reserve chairman, Jerome Powell, also seemed to evaporate after White House reassurances that President Donald Trump has no plans to fire him.
The Dow Jones Industrial Average surged 1,086 points, or 5 percent, to end at 22,878. It is now 14.7 percent off its 26,828.39 closing record high on Oct. 3.
The S&P 500 increased 117 points, or 4.96 percent, to finish at 2,468 on Wednesday. The index is now 15.8 percent lower than its 2,930.75 closing record high on Sept. 20.