US stocks rebound as traders return from Christmas holiday

Associated Press

U.S. stocks surged today, recovering much of their losses from a Christmas Eve plunge and placing the market on track for its best day in nine months.

Gains in technology companies, retailers, health care and internet stocks drove the broad rally, which gave the benchmark S&P 500 index some breathing room after it slid Monday to just shy of what Wall Street calls a bear market – a 20 percent fall from an index's peak.

Energy stocks also rebounded as U.S. crude oil prices surged toward their biggest one-day gain in more than two years.

Trading volume was lighter than usual after the Christmas holiday. Markets in Europe, Hong Kong and Australia were closed.

"Today simply can only be really chalked up to a reflex rally after having been oversold," said Sam Stovall, chief investment strategist for CFRA. "The real question is do we have follow-through for the rest of this week."

The S&P 500 index rose 63 points, or 2.7 percent, to 2,414 of 2:51 p.m. Eastern Time. The Dow Jones Industrial Average climbed 580 points, or 2.7 percent, to 22,372. The tech-heavy Nasdaq gained 228 points, or 3.7 percent, to 6,421. The Russell 2000 index of smaller-company stocks picked up 40 points, or 3.2 percent, 1,307.

Today's gains provide the S&P 500 some breathing room after finishing the shortened trading session Monday just shy of a bear market. It would mark the end to the longest bull market for stocks in modern history after nearly 10 years.