Finance Finance News ASX rebounds after Wall Street’s wild ride

ASX rebounds after Wall Street’s wild ride

Wall Street
The US S&P 500 index is on track for its biggest December percentage decline since the Great Depression. Photo: Getty
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The Australian Stock Exchange has followed Wall Street’s  rebound following the biggest one-day declines for the S&P 500 and Dow in more than six years.

Major US indexes swung from negative to positive and back on Wednesday morning (AEDT) before rallying in the final hour of trading to end its day 2.3 per cent higher at 24,913.

The Australian market clawed back .087 per cent on Wednesday, climbing 51.3 points to 5981.5.

In the US stocks swung wildly between positive and negative territory on a highly volatile trading day. The Dow Jones Industrial average traded in an almost 1000-point range from the opening to closing bells.

The S&P 500 rose by 1.7 per cent, while the Nasdaq has lifted by 2.1 per cent. Regardless, over the past week, $5.1 trillion ($US4 trillion) has been wiped off stock markets around the world.

The sharp declines in recent days marked a pullback long awaited by investors after the market minted record high after record high.

“Put your seatbelts on. It’s going to be a volatile ride for the next several trading sessions,” said Chad Morganlander, portfolio manager at Washington Crossing Advisors in Florham Park, New Jersey.

Fundamentals are moving forward in a positive way, which gives us confidence that in the long run you’ll continue to see higher highs within the markets.” Australian investors joined in the dramatic four-day-old global sharemarket sell-off on Tuesday, with jumpy traders wiping almost $60 billion off the value of the ASX 200.



Trump silent on Wall St nose dive

Meanwhile, US President Donald Trump has maintained an uncharacteristic silence since the stock market took a nose dive, notable for a businessman president who regularly points to the rising market as evidence of the success of his presidency and economic policies.

His reaction highlighted the risks for politicians who take credit for soaring stocks: the fall.

President Trump avoided any mention of the stock market during an economic speech on Monday in Ohio, and he ignored the questions reporters shouted at him as he returned to the White House after the markets had closed for the day.

He did not tweet about the subject on Tuesday morning.

“The president’s focus is on our long-term economic fundamentals, which remain exceptionally strong, with strengthening US economic growth, historically low unemployment, and increasing wages for American workers,” chief spokesperson Sarah Huckabee-Sanders said in a written statement.

“The president’s tax cuts and regulatory reforms will further enhance the US economy and continue to increase prosperity for the American people.”

-with AAP

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