The Dow experienced its largest single-day point gain in history while the Nasdaq and S&P erased all of the losses from Christmas Eve's stock slaughter.
The Dow jumped nearly 5%, or 1,086 points to 22,878 while the S&P 500 gained 4.96%. The Nasdaq jumped 5.8%.
The Nasdaq had a broad rally, with retail stocks bolstered by strong holiday season results leading the way. There was only one stock, NetEase Inc. (NTES) - Get Report , on the Nasdaq that declined, falling 0.6% on the day.
The record rebound came after a brutal Christmas Eve that saw the Dow dive more than 600 points and which triggered a sell off in Asian markets as well.
The S&P 500 (^GSPC) fell into bear market territory Monday after falling nearly 3%. The Dow Jones Industrial Average (^DJI) and Nasdaq (^IXIC) were also both down double digits year to date before Wednesday's rally.
Turmoil in Washington D.C. is not helping matters with the government engaged in a partial shutdown as President Trump pushes for funding for his border wall amid opposition by congressional Democrats.
Bond yields are also suffering as investors move into government safe havens amid market uncertainty. The benchmark 10-year U.S. Treasury note yield fell to 2.722%, its lowest point since April.
Commodities like oil have not fared much better in recent weeks. World benchmark Brent crude stocks fell 6% in the previous session to its lowest mark in over a year. But crude was showing life early Wednesday, rising 0.12% to $50.53 per barrel while U.S. benchmark West Texas crude rose 0.89% to $42.91.
Shares of Action Alerts PLUS holding Amazon Inc. (AMZN) - Get Report were up 9.45% after the e-retailer reported that it sold a record number of items during the 2018 holiday season. While the famously secretive company did not provide concrete numbers, it did say that millions of people signed up for Amazon Prime during the period and that it sold millions more of its own devices than it did last year.
Fellow AAP holding Apple Inc. (AAPL) - Get Report closed up by more than 7 percent, finally showing signs of recovery after a German court ruled last week that it infringed on former supplier Qualcomm's (QCOM) - Get Report patent and that it must stop selling some of the older versions of its iPhone in the country.
Asian markets also showed signs of recovery Wednesday, with the Nikkei gaining about 0.9% during a volatile session after dropping 5% in the previous session. The Shanghai Composite meanwhile shed 0.26% and the Hang Seng fell 0.4%.