Boxing Day sees stock market surge

After the worst-ever Christmas Eve performance, the US tech stock market experienced one of its best days in a decade, sending FAANG stocks soaring

27Dec

After several months of struggling and the worst-ever Christmas Eve performance, the US tech stock market enjoyed a huge boom on Boxing Day in one of the best trading days in the last decade.

The FAANG stocks, which have lost more than a trillion dollars collectively since an all-time high over the summer, all saw their stock prices soar. Amazon, one of the biggest sufferers of the tech market curse of late, was the biggest winner on Boxing Day as it finished on 9.5%, clawing back more than $62bn in value just two months after it lost 25% of its value in just eight weeks. Apple's value rose by 7% to gain more than $49bn while Alphabet's market value soared by 6.4% ($41bn), Facebook gained 8.2% ($24.3bn), and Netflix increased by 8.5% ($8.6bn).

The crashing value of these companies has previously been blamed for the struggling stock market as a whole over the last few months.


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The Dow and S&OP overall dropped more than 2.5% on Christmas Eve, but on Boxing Day they both regained 4.9% value.

However, the recent upswing in the economy does not necessarily mean that Wall Street is in the clear.

"Investors are aware of negative factors, but they aren't paying attention to those. They are looking at the Dow's 1,000 gain," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities in Tokyo.

"I think worries regarding the US government shutdown as well as lack of clarity over whether the US-Sino negotiations (over trade) will go well or not still remain," Fujito added.

President Trump also voiced his opinion on the recent downturn in the stock markets when on Christmas Eve he tweeted: "The only problem our economy has is the Fed. They don't have a feel for the Market, they don't understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can't score because he has no touch – he can't putt!"

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