Dow notches record point surge in dramatic rebound

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The Dow Jones Industrial Average soared more than 1,000 points, posting its biggest daily point gain on record.

The Dow Jones Industrial Average rose 1,086.25 points, or 4.98 percent, to 22,878.45, the S&P 500 gained 116.6 points, or 4.96 percent, to 2,467.7, and the Nasdaq Composite added 361.44 points, or 5.84 percent, to 6,554.36.

While yesterday's rally may have taken stocks into overbought territory, from a short-term standpoint anyway, it's also possible that certain underlying worries that haven't gone away are capping the market's attempt at a Santa Claus rally.

"You're watching the market wrestle with, 'Ok, are we within a couple percent off the bottom, or does the community think there's another 20 percent lower?'" said Billy Huzar, client investment strategist at J.P. Morgan Private Bank. Many economic barometers still look encouraging.

Investors cheered news of the biggest holiday shopping season in six years. Kohl's gained 10.3 percent to $65.92.

China's Shanghai Composite index fell 0.6 percent.

As investors desperately hope for any good news - whether from the administration or the Federal Reserve - to stop the stocks from their free fall, there is still value in the market to profit from.

However, according to Robert Duggan, a senior portfolio manager at SkyBridge Capital, many investors exited the us stock market anticipating the uncertainty and instability in global markets to intensify. A bear market is a drop of 20 percent from a peak. The shaky trading followed a 5% plunge on Christmas Day that dragged the Japanese index into a bear market.

All but one stock in the S&P 500 rose Wednesday.

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Risk Indicators: The VIX, shown as a bar chart, has come down from recent highs, and Treasury yields, as represented by a purple line showing the 10-year Treasury Index, have risen.

The Nasdaq is up 246.50 points, or 3.9 percent.

Retailers gained, with the S&P 500 retailers sub-index.SPXRT jumping 1.75 percent, after a Mastercard report showed USA holiday sales were the strongest in six years.

The Nasdaq is down 323.90 points, or 4.7 percent.

Thin trading and a lack of big news often send stocks higher in the last week of December. The Bureau of Economic Analysis said on Wednesday that it's required to suspend all operations until Congress approves funding, which means that the government might not release its fourth-quarter report on gross domestic product as scheduled for January 30.

The Dow was whirling between slightly negative to 200 points up in the first hours of Wednesday's session before its early afternoon lift on the tails of surging blue chips Apple, Home Depot, Microsoft, Visa and Nike. Brent crude, used to price global oils, lost 4.2 percent to $52.16 a barrel in London. It fell $1.97 the previous session to $52.73.

The dollar strengthened to 111.36 yen from 110.41 yen on Monday. The euro weakened to $1.1387 from $1.1404.

Gold edged up 0.6 percent to $1,281.10 an ounce and silver gained 1.2 percent to $15.31 an ounce.

In Asian markets, the Nikkei 225 index rebounded 3.9 per cent, while South Korea's Kospi was little changed.