US Market rebounds on bargain hunting

14 Oct 2022 , 09:50 AM

The US stock market finished volatile session firmly into positive territory on Thursday, 13 October 2022, as investors chased for bottom fishing across the board, believing inflation and higher interest rates have already been priced into the markets following the recent downward trend. At the close of trade, the Dow Jones Industrial Average index advanced 827.87 points, or 2.83%, to 30,038.72. The S&P500 index grew 92.88 points, or 2.6%, to 3,669.91. The tech-heavy Nasdaq Composite Index increased 232.05 points, or 2.23%, to 10,649.15. All 11 S&P500 sectors advanced, with energy and financial sectors rising more than 4%, meanwhile information technology sector rose 3.1%. Also, communication services, healthcare, industrials, materials, utilities issues gained above 2%. Market participants initially flipped to safety mode after the release of the Labor Departments highly anticipated report on consumer price inflation in the month of September. The report showed consumer price index rose more than expected 0.4% in September after inching up by 0.1% in August. Excluding food and energy prices, core consumer prices climbed by 0.6% for the second month. The report also showed the annual rate of growth by consumer prices slowed to 8.2% in September from 8.3% in August, although the annual rate of growth by core prices accelerated to a 40-year high of 6.6% from 6.3%. After the data, investors were betting that the Fed would raise interest rates sharply in three weeks time and ultimately lift rates to 4.75%-5% by early next year. Minutes of the Feds latest policy meeting released on Wednesday showed officials emphasized the cost of taking too little action to bring down inflation likely outweighed the cost of taking too much action. But several policymakers did stress a need to calibrate the pace of further rate hikes to reduce the risk of significant adverse effects on the economy. Among Indian ADR, Dr Reddys Labs added 1.2% to $51.72, HDFC Bank added 1.4% to $57.65, and INFOSYS was up 5.6% at $18.05. Tata Motors added 2.7% to $24.31, ICICI Bank added 2% to $21.28, and WNS Holdings added 3.5% to $83.47. Azure Power Global fell 3.1% to $4.73 and Wipro fell 0.2% to $4.58.Powered by Capital Market – Live News