Tallahassee Journal

Dow looks to erase 2016 nightmare on Wall Street

Dow looks to erase 2016 nightmare on Wall Street

The Dow hasn’t done it yet, but it’s close to erasing all the red ink that drenched it at the then-worst start to a year ever. The Dow Jones industrial average — which was down and out on Feb. 11, when in intraday trading it was off more than 15% from its May 2015 record high before closing down 14.5% from its peak — has now erased all of its losses for the year except for the red ink suffered on the first trading day of the year Jan. 4, when it fell 276 points.USA - Business - Dow Jones Sign

After a 67-point gain Monday — the blue-chip stock gauge’s fifth consecutive session of gains — to close at 17,073.95, the Dow is within 351.08 points, or 2%, of its year-end 2015 close of 17,425.03. The Dow, however, is pointing lower in pre-market trading Tuesday as traders around the globe react to weak export data out of China. The Dow’s turnaround has been driven by a number of factors but has a lot to do with a dissipation of fears that had investors aggressively dumping shares early in the year.

Recent data on the U.S. economy and job market have eased fears of a recession. A sharp rebound in oil prices also has helped stabilize stocks, as beaten-down energy names have gone from dogs to high-fliers virtually overnight as word of a possible deal to cut production by leading producers started to seem more possible. Also boosting sentiment: China has avoided the type of so-called hard landing investors had feared. Still, the Dow has yet to get back to even for the year. And the iconic stock index is still nearly 7% off its record high.