US stock markets struggled to build a post-Christmas rally on Wednesday morning, recovering some of the ground they lost after their worst ever performance on .
The S&P 500 Index, the Dow Jones and Nasdaq all recorded small gains in morning trading.
The Dow and S&P 500 dropped more than 2.5% on , their worst ever pre-holidays performance. Worries about rising interest rates, Donald Trump’s attacks on the Federal Reserve for raising those rates, a government shutdown and the continuing trade tensions between the US and
US stock markets have enjoyed a record-breaking run, rising steadily since , the low point of the financial crisis. And the wider economy appears robust with unemployment low and inflation in check. But despite evidence that the US economy remains robust, this year could still mark the first bear market in close to a decade.
On Monday the Dow was off 18.8% from its October high, while the S&P had fallen 19.8% from its record. The tech-heavy Nasdaq index is already in a bear market, down 23.6% from its August record. The soaring share prices of technology companies – especially the so-called Faang companies, Facebook, Amazon,
With just four more trading days to go until the end of the year, investors are expecting a bumpy ride.
Much of the headwinds have come out of
The latest attack contributed to Monday’s sell-off and came as economists wrestled with a government shutdown, sparked by Trump’s attempts to fund his border wall with
Trump has since tried to walk back his criticism of the Fed, telling reporters at the White House on Tuesday that while the Fed was “raising interest rates too fast” he still had confidence in the the central bank. “I mean, the fact is that the economy is doing so well that they raised interest rates and that is a form of safety in a way,” he said.
Peter Cardillo, chief market economist at Spartan Capital Securities in