Shares of General Motors gained $1.15 or 3.55 percent on Wednesday, December 26th, 2018 – significant movement for the automaker that has seen the value of its shares slide over the past few weeks.
The GM stock rally follows a massive rally on Wednesday, which marked the biggest post-Christmas rally for U.S. stocks ever. The day results represented the Dow Jones Industrial Average’s largest single-day point gain in history, jumping 1,086.25 points or 4.98 percent, to close at 22,878.45. The gains also marked the biggest upside move for the Dow (on a percentage basis) since March 2009, when it rose 5.8 percentage points.
The S&P 500 also jumped a notable 4.96 percent to finish the trading day at 2,467.70. The performance represented its best day since March 2009. Meanwhile, the Nasdaq Composite also had its best day since March 2009, soaring 5.84 percent to close at 6,554.36.
However, GM stock saw a very strong dip in after-hours trading, bringing its value to $32.52 per share at around 4:15 pm. The dip almost erased the day’s gains. Fortunately, it was quickly followed by a return to the mid-$33 per share mark roughly an hour later.
Despite this post-Christmas rally, GM shares continue to trade at roughly the same value as the $33 per share figure of the “New GM’s” Initial Public Offering (IPO) in November 2010 on the NYSE. The automaker has been doing a significant amount to increase its share price, exiting unprofitable markets, divesting loss-making divisions, making adjustments to its business model in order to prioritize profit over market share, while investing heavily into new-age mobility ventures such as electric and autonomous vehicle technologies.