Shrugging off Monday’s decline, stock markets climbed on Wednesday.
The Dow Jones Industrial Average (DJIA) increased +1%, while the S&P 500 gained + 1.2%. The Nasdaq Composite jumped +1.6%. Visa & Microsoft led DJIA's gains. Consumer Discretionary stocks were the leaders in the S&P 500's rise on Wednesday.
FAANGs also showed solid traction on Wednesday. Facebook, Amazon, Netflix and Alphabet shares all climbed more than 2%. Apple stock price inched up +1.9%.
Wednesday's rebound comes after the worst Christmas Eve plunge: the S&P 500 entered the bear territory on Monday. Monday’s sell-offs followed reports of Treasury Secretary Steven Mnuchin holding calls with major U.S. banks last weekend and issuing a statement saying, "The banks all confirmed ample liquidity is available for lending to consumer and business markets." While Mnuchin probably tried to assuage investor fears amidst rising volatility towards the year-end, his statement seemed to have triggered confusion or suspicion in markets leading to Monday’s steep declines.
But Wednesday’s market rise could potentially be signalling that the overall power of fundamentals of U.S. companies and the economy might not have worn off, yet.
On Tuesday, although President Donald Trump once again blamed the U.S. Federal Reserve of hiking interest rates too fast, he added that U.S. companies were "the greatest in the world" and presented a "tremendous" buying opportunity for investors.