US Stocks surge on easing inflation concerns

13 Aug 2022 , 09:21 AM

The US stocks climbed up on Friday, 12 August 2022, with the Dow, the NASDAQ and the S&P500 indexes closing at new three-month highs, on the back of bargain buying across the sectors, after tamer than expected readings on consumer and producer prices indexes for July helped ease concerns about inflation in the worlds largest economy. Adding to the positive sentiment about inflation, the Labor Department released a report showing U.S. import prices fell 1.4% in July after rising by an upwardly revised 0.3% in June. The report also showed export prices tumbled by 3.3% in July after climbing by 0.7% in June. Meanwhile, market sentiments also underpinned after report from the University of Michigan showed that consumer sentiment index jumped to 55.1 in August from 51.5 in July. The University of Michigan also said one-year inflation expectations dipped to 5% in August from 5.2% in July, while five-year inflation expectations crept up 3.0% from 2.9%. At the close of trade, the Dow Jones Industrial Average index inclined 424.38 points, or 1.27%, to 33,761.05. The S&P500 index was up by 72.88 points, or 1.73%, to 4,280.15. The tech-heavy Nasdaq Composite Index increased by 267.27 points, or 2.09%, to 13,047.19. For the week, the S&P 500 skyrocketed by 3.3% to record its fourth straight weekly gain, while the Nasdaq and the Dow spiked by 3.1% and 2.9%, respectively. All 11 S&P sectors ended higher, with consumer discretionary was the best performer, climbing 2.3% followed by information technology (up 2.07%), communication services (up 2%), materials (up 1.9%), and financials (up 1.6%) issues. Among Indian ADR, INFOSYS fell 0.2% to $20.11, Dr Reddys Labs added 1% to $53.64, Azure Power Global added 8.9% to $12.50, WNS Holdings added 0.8% to $87.38, HDFC Bank added 1.8% to $66.17, and ICICI Bank inclined 2.1% to $22.35. Wipro added 1.5% to $5.51, and Tata Motors gained 2.2% to $30.41. Powered by Capital Market – Live News