PHOTO: RICHARD DREW/AP Trader Peter Tuchman, right, slaps a high five before the closing bell on the floor of the New York Stock Exchange.

Stocks have climbed back from their epic Christmas Eve plunge as all three indexes posted big gains.

The Dow Jones industrial average roared more than 1050 points in late afternoon – nearly 5 per cent – as stocks snapped a four-day losing streak that had placed the 10-year bull market on the edge of death on Monday.

“Today the market’s message is that we have nothing to fear but fear itself,” said Ed Yardeni, president of Yardeni Research. “The recent selloff reflected fears of an impending recession which were blown away today by Amazon and other retailers reporting a record holiday selling season. Santa is back.”

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