Last week the Dow lost 1,655 points, or 6.8 percent.
After a strong start, the S&P and Dow swung between gains and losses.
USA stocks moved broadly higher in early trading Wednesday, recovering some of their losses from a steep drop ahead of the Christmas holiday that left the benchmark S&P 500 index on the edge of what Wall Street calls a bear market.
The previous record point gain for the Dow was 936.42 on October 13, 2008, when markets were whipsawed nearly daily by developments in the financial crisis, which was then in full swing.
After strong holiday sales report from Mastercard on Wednesday, investors will watch for the consumer confidence data due at 10:00 am ET, which is likely to show the index fell to 133.7 in December from 135.7 in the month before.
USA stocks are on track for their worst year since 2008, which was during the Great Recession, and their worst December since 1931, which was during the Great Depression. Even with Wednesday's big gains, the Dow, S&P 500 and Nasdaq are all down more than 10 percent for the month. Marathon Petroleum slid 2.1 percent to $57.14. Both indexes rose about 5 percent Wednesday, when the Dow had its biggest-ever single-day point gain.
The tech-heavy Nasdaq lost 141 points, or 2.2 percent, to 6,411.
The Federal Reserve's decision to boost interest rates, concerns about slower global growth, and a partial USA government shutdown have caused unease among investors, leading to a sharp drop in US stock prices.
The rally was because the market was very oversold and small investors mostly boosted the market higher, said Naeem Aslam, chief market analyst at Think Markets UK Ltd in London.
Perrigo gave up 5.8 percent to $38.35, one of the big decliners in the health care sector.
The rally in NY fed through to Japan, where the Nikkei pulled out of bear market territory to turn 4% higher overnight.
Bank stocks fell along with Treasury yields, which affect interest rates on mortgages and other loans. The soaring share prices of technology companies - especially the so-called Faang companies, Facebook, Amazon, Apple, Netflix and Google - helped push stock markets to new highs. Noble Energy slid 5.1 percent to $18.10.
Traders work on the floor of the New York Stock Exchange on Wednesday.
The dollar strengthened to 111.36 yen from 110.41 yen on Monday. The euro rose to $1.1397 from $1.1353.
Gold edged up 0.1 per cent to $1,273 an ounce and silver gained 2 per cent to $15.12 an ounce. (2.9 percent), and American Airlines (2.9 percent).
The markets were rattled by an unprompted announcement by Treasury Secretary Steven Mnuchin over the weekend that the US banking system was solid.
Stocks on Wednesday climbed back from their epic Christmas Eve plunge as all three indexes posted big gains. Britain's FTSE 100 fell 1.1 percent.
ASIA'S DAY: Japan's Nikkei 225 index rebounded 3.9 per cent to 20,077.62.