United States stocks plunged in highly volatile trading on Monday, with both the S&P 500 and Dow Industrials indices slumping more than 4%, as the Dow notched its biggest intraday decline in history with a nearly 1,600-point drop and Wall Street erased its gains for the year.
The Dow Jones index climbed more than 300 points (1.5 percent), by the afternoon, coming back from an abrupt 750-point plunge as election results came in. Stock markets reversed overnight losses stemming from the shock of Donald Trump's upset victory and and the Dow Jones Industrial Average soared to what would be a record closing high as investors assimilated the implications of the Republican return to the White House.
Shares rise and oil prices jumped 9% after revised figures showed the US economy grew by far more than had been thought between April and June. The economy grew by an annualized rate of 3.7%, up from the first estimate of 2.3%. Growth of 0.6% in the first three months of the year was not revised.
Trading on the New York Stock Exchange (NYSE) on Wednesday restarted after being suspended for more than three hours due to a technical fault. The NYSE has yet to give full details of the problem, but emphasized that it was not the result of a cyber hack. Other exchanges, including Nasdaq, reported no problems and were trading normally.
All United Airlines flights were grounded for almost two hours early Wednesday due to a computer hardware problem, creating travel headaches for tens of thousands of passengers that stretched into the afternoon. United said 800 flights had been delayed, with four flights canceled on its main carrier and 55 on its regional partners. A similar situation happened on 2 June when United flights were also grounded due to automation issues.
Global stock markets have rallied after a short-term deal to stave off the US “fiscal cliff” was reached. In New York, the Dow Jones closed up 2.4%, while European shares were up about 2% for the day.
Stock markets, shuttered for two days by Hurricane Sandy’s punch ashore, plan to reopen Wednesday. The New York Stock Exchange’s parent company, NYSE Euronext, said trading would commence as usual with a 9:30 a.m. opening bell.