Volatile Dow closes up 567 points on day of sharp swings

Volatile high-volume trading conditions in New York moved stocks wildly on Tuesday, with the Dow Jones closing up 567 points, or 2.3%, at 24,912.

The increase came on a day when stocks moved by more than 1,100 points. At its lowest, early in the trading day, the Dow was down 567 points.

It was the largest one-day point gain since August 2015, and the biggest percentage gain since January 2016. The S&P 500 rose 1.7% to 2,695. The Dow and S&P are now back in positive territory for 2018.

After Monday, which saw the biggest one-day drop in six years – now blamed on a combination of interest-rate fears, computer-driven trading and the effect of volatility funds – the results restored a measure of confidence.

Treasury secretary Steven Mnuchin said he was not “overly concerned about the market volatility. I think the fundamentals are quite strong.”

At the White House, where Donald Trump has staked the measure of his performance on the economy and frequently hyped the gains of 6,000 points since he took office, press secretary Sarah Sanders echoed the sentiment.

“We have historically low unemployment and we actually have increasing wages for American workers,” Sanders said.

“There’s nothing that’s taken place over the last couple of days in our economy that’s fundamentally different than it was two weeks ago and we’re very comfortable with where we are right now.

She added: “Does the president have second thoughts about taking credit for a booming economy? Absolutely not.”

After starting the day deep in negative territory, and lingering in a neutral zone for much of the sessions, the Dow surged in the final 90 minutes of the trading session to end the day sharply up.

Earlier in the day, European and Asian markets also fell. The Japanese Nikkei 225 plunged 4.7%, while the Shanghai composite pulled back 3.4%. Shares in London plunged for a sixth day and by the largest amount since the Brexit vote.