NEW YORK, Aug. 26 (UPI) — The Dow Jones Industrial Average bounced back Wednesday, closing up 4 percent after some of the worst trading days in four years.
The Dow closed up about 620 points, the first gain at close in six consecutive days and the biggest gain since 2008.
“It seems to me that the selling has exhausted itself for now,” says Bob Doll, chief equity strategist at Nuveen Asset Management, told USA Today.
Stocks had been dropping drastically since Friday, when the Dow closed down 588 points in what analysts were calling a correction of years of high trading. Things have fluctuated since then in response to weakened Chinese markets.
The Shanghai composite closed down 1.3 percent Wednesday.
Wednesday was perhaps the first step toward stabilization, Katie Stockton, chief technical strategist at BTIG, said.
“Today is the first day in which global equity markets are mixed, not collectively up big or down big,” she said.
“This could be an early indication of the correction releasing its hold, but we have yet to see a reaction to widespread oversold conditions,” she added.
“The extremes in our market internal measures support a relief rally in the days ahead, and we think the magnitude of that rally may hold information about whether the breakdowns that have occurred are real or shakeouts.”
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