The Dow Jones Industrial Average rallied by more than 1,000 points, climbing by around 1,086 points, or 5%, to end near 22,878. while the S&P 500 SPX, +4.96% advanced around 117 points, or 5%, to close near 2,468. Before the recent bounce, the index fell 20 percent from its recent peak, slipping into a bear market. The Nasdaq Composite COMP, +5.84% rose around 361 points, or 5.8%, to finish around 6,554.
While yesterday's rally may have taken stocks into overbought territory, from a short-term standpoint anyway, it's also possible that certain underlying worries that haven't gone away are capping the market's attempt at a Santa Claus rally.
"We are in a bear market and when that happens the whole market gets cheap."Amazon had its biggest gain in more than a year.
Sales in the 2018 US holiday shopping season rose 5.1 percent to over $850 billion, the strongest in six years, according to a Mastercard report.
Health care and technology companies, banks and industrial stocks accounted for much of the broad gains.
But concerns about a slowing global economy and the protracted trade dispute with China have not gone away, and they are likely to put pressure on the market again in coming days.
Even with Wednesday's recovery, USA stock markets are still on pace for their worst December since 1931, CNN reported, citing S&P Global Indices.
The figures suggest a stock-market swoon and partial government shutdown haven't curbed consumer confidence and spending. Texas Instruments dropped 1.3 per cent to $91.74. The S&P 500 retailing index jumped 7.4 percent, while shares of online retailer Amazon which touted a "record-breaking" season, climbed 9.4 percent. Bank of America, JPMorgan and Goldman Sachs slipped more than 1 percent as the yield on the the 10-year Treasury fell to 2.76 percent from 2.79 percent.
Let down by US, Syrian Kurdish leaders look to Russian Federation and Assad
Ankara regards the YPG as terrorists and has been infuriated by USA support for the group in the fight against Islamic State. Its capture was a milestone in the US-backed campaign against the militant group.
The Dow is off 18.9 percent from its closing high, while the Nasdaq is already in bear market along with the Dow Jones Transport Average and the small-cap stocks. The Dow posted its biggest daily point gain ever. The swing was indicative of the volatility that has gripped the stock market throughout December.
According to CNBC, "retailers were among the best performers on Wednesday..."
While U.S. stocks are still headed for their first annual loss in almost a decade, Wednesday's trading has brought early glints of relief as a new year approached. Brent crude, used to price worldwide oils, lost 4.2 percent to $52.16 a barrel in London. Brent crude, used to price worldwide oils, gained 7.9 percent to $54.47 a barrel in London. It fell $1.97 the previous session to $52.73.
The S&P and the Dow have fallen about 12 percent for the year, while the Nasdaq has shed 10 percent, with just four more trading sessions left to wrap up the year.
The U.S. dollar strengthened to 111.13 yen from 110.41 yen on Monday.
In Europe, the benchmark Euro Stoxx 50 lost 1.1%.
In other trading Wednesday, South Korea's Kospi gave up 1.3 percent, while Japan's Nikkei 225 index, which plunged 5 percent on Tuesday, picked up 0.9 percent.
Gold edged up 0.1 percent to $1,273 an ounce and silver gained 2 percent to $15.12 an ounce.