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Stock markets extend gains as an end-of-year relief rally kicks off

Published 12/29/2022, 09:42 AM
Updated 12/29/2022, 10:43 AM
© Reuters.

© Reuters.

By Daniel Shvartsman 

Investing.com - U.S. markets shot higher in early Thursday as investors looked to recover from a rocky couple days this week.

At 10:40 ET (15:40 GMT), the S&P 500 traded up 1.6% to 3845, while the NASDAQ Composite was up 2.4% at 10455. The Dow Jones Industrial Average traded 1% higher, and the Russell 2000 traded up 2.4%.

Initial jobless claims ticked higher last week as expected by economists, while continuing jobless claims came in slightly ahead of economist expectations. It's possible that investors digging for signs that the economy is slowing so the Federal Reserve can ease off their monetary policy tightening are reacting to that data, though it is just as feasible that after heavy tax-loss selling earlier this week, many went looking for bargains.

Befitting a positive day in the markets, most major stocks shot higher. Tesla (NASDAQ:TSLA) was up nearly 8% and above $121/share, as longtime bullish shop Morgan Stanley came out with a 'buy the dip' note, even as they cut their price target to $250. Warner Bros. Discovery, Inc. (NASDAQ:WBD) was up 4.7% in early trading and Netflix (NASDAQ:NFLX) was up 4%.

An exception to this bullish trend was Cal-Maine Foods, Inc. (NASDAQ:CALM), which dropped 11.7% in early trading after its earnings report beat expectations, but included news of a meaningful price hike due to a rise in feed costs. Goldman Sachs traded up only 0.4% as reports came out from Bloomberg that the investment bank was planning another round of job cuts that will be 'unveiled in a matter of weeks'.

Crude Oil WTI Futures dipped again, down 1.7% to $77.6/barrel, with Brent Oil Futures down 1.5% to $82.75. Natural gas continued its precipitous fall, down 3.9% to $4.5.

The US Dollar dropped 0.3%, giving back yesterday's gains, with the EUR/USD up a corresponding 0.38% to $1.0648. Bitcoin traded around $16650, in line with its price through the week, as Cannacord made the case it could be years before we see a bitcoin bull market return. Gold bounced back up to $1825/oz, a .5% gain.

(Article posted at 10:11am ET, updated at 10:42am ET)

Latest comments

Like I said...not a relief rally...a buying surge
A predictable tight-rope walk into the close, as the intraday gyrations faced by every loss mysteriously vanish into thin air.  Will the biggest investment JOKE in the world plunge "in late trade," the inverse of the way it "rallies" during every loss?  Or will it magically head into the close with nary a move lower?  I think we all know the answer, given that this "market" is nothing but a pathetic fraud.  Assume the proper position for the holiday weekend America, can't be that much of a surprise anymore.
Theres the Mitchel Pioneer I know and love. Thank you for continuing to supply me with my daily dose of utter lunacy.
Low volume. institutions stopped selling. retail kept buying.
Yep. It evaporates by the end of next week.
Market usually rises on declining volume
using traders using spam can be financially dangerous...
Only 2 Days left in the year. And weve got an End of the year Rally. 🤣🤣😂🤣😂. These Dudes really crack me up.
Closer to 1 day now
no other better reason? dow up due to 🎅
In 2018 Dec 26th, the US market broke out of a 3-months downtrend and started a 15-months uptrend.
  I think a lot will depend on how Russia acts wrt Ukraine and the CCP wrt covid.
... in Q1 2023 & beyond
first ...evaluating risk by investors will be reflected by traders actions and determine how much and how fast the moves in the market takes place. but even if the war ends I think any positive move in the markets will be short lived....The slow bleed could term into a waterfall.....the markets will deliver new information and a clearer picture over the next 2 to 3 months.
There is no any gains. What a stupid news.
rally?? are you sure??
One day does not constitute a relief rally.
Just call it a 1-day rally
stock markets gain on....NOTHING?
This news is like mr.bean. "Funny Gains"
A.ghost rally based on nothing. If you believe it, buy it.
The determinant is not what you or I believe, it's what the market believes.
The intraday volatility miraculously vanishes, as another criminally manufactured, uninhibited "rally" unfolds.  No reversals with the same clock-work timing that strips losses out of the system.  The laughingstock of the financial world "gains" without stress, as Wall Street sharpens the financial knife, ready to plunge it into the back of America heading into yet another holiday.
BIGGEST INVESTMENT JOKE IN THE HISTORY IF THE WORLD am I right Mitchel
"plunge it into the back of America"  --  The majority Americans are not triggered perma-bears
you’d be surprised
Everything is oversold & due 4 burst. Joe Williams
Rally just because its the 'end of the year' as the world continues to burn around us...I guess that makes sense given these rigged markets
just beginning of massive rally. ain't seen nothing yet.
1 day up equals relief rally.
That is in the title of the article, after all lol
I mean, if there’s an official rule that a rally has to constitute more than one day we will be happy to update our style guide accordingly. :) I just thought 1.5% was notable. Anyway thanks for reading and best of luck in 2023!
You're right. There really isn't a specific time frame.
everything is under control and it can be set up
I better spent my money on pleasure than invest it into stock market…
Learn to trade stocks as Indices in the Forex market and you’ll make a KILLING daily! I never just trade stock, Forex is where its at! I got in this morning at 10:30am ET and in less than 30-45 minutes i placed a 2.5 standard trade ($20.50 per pip) and made over $10k! My over all for trades banked over $103k in 1 hour total!
$50 will get you a happy ending. Just ask Robert Kraft.
A few blocks down the road they will charge you $50 for a bit of pleasure 😉
New year rally easy ling
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