Dow Jones, S&P 500 Post Single Largest Point Gains Ever
Stock market averages began the month of March with a day for the record books, immediately after a week of record-setting price action to close out the month of February.
On Monday, the Dow Jones Industrial Average (^DJI) posted its single largest point gain ever of +1,293.76 or +5.1% to close at 26,703.32. This came only 2 days after the the DJIA posted its single largest point loss of -1,190.95 or -4.4% on Thursday, February 27.
The S&P 500 (^SPX) was +136.00 or +4.6% to close at 3,090.23 and also logged its largest 1-day point gain ever. It was the largest percentage gain since December 26, 2018. For the S&P 500, this comes one day after posting a weekly decline of -11.5%, only its fifth weekly decline of -10% or more since it was introduced as a market benchmark by Standard and Poors in 1957.
The Nasdaq Composite (^IXIC) closed up +384.80, or +4.49% at 8,952.16.
The beginning of what might become a “V” shaped technical reversal is very reminiscent of what occurred during the last two weeks of 2018.
From December 13, 2018 to December 24, the DJIA and S&P 500 had declines of -11.4% and -11.3% over seven trading days.
On December 26, the following day, the DJIA rallied +1,086 points or +4.98%, almost exactly matched by the S&P 500, which gained +116.60 points or +4.96%.
While the fundamental backdrop of today and late 2018 are very different, the very sharp rebound after a five- and seven-day decline has been eerily similar, at least for one day.
Stay tuned. No doubt there is much more volatility to come.