On Wednesday, after a slight volatile session that was kicked off in 2019 the stocks of the United States witnessed slight gains.
The Dow Jones Industrial Average closed at 23,346.24 which was 18.78 points than the opening.
This was after the index had witnessed a drop of about 400 points in the beginning of the day.
Rises in other indexes
Apart from that, the S&P 500 index closed at 2,510.03 thereby witnessing an increase of 0.1 percent.
The Nasdaq index on the other hand reached to 6,665.94 thereby experiencing a rise of 0.46 percent.
During the day, while witnessing the lows, both the S&P 500 along with the Nasdaq index were down by more or less 1 percent. In December, the S&P 500 had reported its worst December in the history, almost since the great depression.
Scenario in December
This was because the volatility was rampant in December which had therefore led to being the worst year since 2008 when the financial crisis took place, for S&P 500.
CEO of Ladenburg Thalmann Asset Management, Phil Blancato has stated that after a long time the market is finally witnessing the buy-the-dip mentality creep into it.
He had further stated that the reason behind this is the valuation and also because of the underlying data which have been good until now even though they have been a bit softer.
Blancato has also said that according to him the market has accepted that as of now it is capitulated and also that they are grinding higher there.
Rise in the stocks
The social media giant, Facebook witnessed a rise of 3.5 percent where the e-commerce giant witnessed an increase of 2.5 percent; these two together helped Nasdaq recover the losses which has incurred to it.
The bank shares also experienced a gain with the big names like the Goldmann Sachs along with the Bank of America and J.P. Morgan Chase all increased by more than 1 percent. These together also helped in erasing the losses which had incurred earlier.
The energy stocks of the S&P 500 index increased by 2.1 percent. This increase was led by the gains which was witnessed by Cabot Oil and Hess because of the surging of the crude of the United States by 2.5 percent which therefore contributed in erasing the losses.
On Wednesday, the stocks had initially witnessed a fall. This was in the wake of a private sector survey which had showed that the activities of manufacturing in the second largest economy of the world has contracted that too for the first time in 19 months.
The Markit Manufacturing Purchasing Managers’ Index of China had witnessed a fall from 50.2 percent in November to 49.7 percent in December.
According to the IHS Markit, the manufacturing PMI of the euro zone had remained at its lowest since the month of February of 2016.
Source: CNBC, Investors