Stocks moved sharply higher at the start of trading on Thursday, regaining some ground following the sell-off seen in the previous session. Buying interest waned not long after the open, however, limiting the upside for the markets.
The major averages have subsequently pulled back well off their highs for the young session but currently remain firmly positive. The Dow is up 139.23 points or 0.8 percent at 17,654.65, the Nasdaq is up 44.79 points or 0.9 percent at 4,954.55 and the S&P 500 is up 15.01 points or 0.7 percent at 2,061.69.
The initial strength on Wall Street was partly in reaction to a substantial rebound by Chinese stocks with the Shanghai Composite Index surging up by 5.8 percent as authorities unveiled fresh support measures.
In a bid to curb crashing prices, China's securities regulator banned senior management and investors who own stakes in businesses exceeding 5 percent from selling their shares for next six months.
China's central bank also said it would provide sufficient liquidity to China Securities Finance Corp., the state-backed margin finance company.
Additionally, the China Banking Regulatory Commission said it would encourage banks to support companies' share buybacks by offering them collateralized loans.
Early buying interest was also generated by optimism about a deal between Greece and its creditors after the debt-laden nation promised to implement pension and tax reforms to win fresh aid.
Greek Prime Minister Alexis Tsipras told European parliament that he would submit a detailed reform plan to the Eurozone later today.
However, the positive sentiment was partly offset by news that the International Monetary Fund lowered its forecast for global economic growth in 2015.
The IMF said it expects the global economy to grow by 3.3 percent this year compared to its previous forecast for 3.4 percent.
The lender attributed the reduced forecast to the weakness seen in the U.S. during the first quarter. The IMF also warned that the problems in China and Greece cloud the outlook.
Despite the subsequent pullback by the broader markets, significant strength remains visible among airline stocks. The NYSE Arca Airline Index has surged up by 2 percent, bouncing off its worst closing level in eight months.
Trucking, oil service, and brokerage stocks also continue to see considerable strength, while gold stocks have moved to the downside.
In overseas trading, stock markets across the Asia-Pacific region rebounded on Thursday after seeing early weakness. Japan's Nikkei 225 Index advanced by 0.6 percent, while Hong Kong's Hang Seng Index surged up by 3.7 percent.
The major European markets have also shown strong moves to the upside on the day. While the U.K.'s FTSE 100 Index has jumped by 1.2 percent, the German DAX Index and the French CAC 40 Index are up by 2 percent and 2.2 percent, respectively.
In the bond market, treasuries are giving back ground after moving sharply higher over the past few sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 6.3 basis points at 2.269 percent.
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December 26, 2025 08:42 ET Third quarter economic growth data from some major economies including the U.S. were the main news in this holiday shortened week. GDP growth and industrial production data from the U.S. helped to boost morale, while the consumer confidence survey results were less upbeat. In Europe, the quarterly economic growth data from the U.K. drew attention, while the minutes of the Australian central bank’s latest policy session was in focus in Asia.