US Wall Street extends gain ahead of Fed

4 May 2022 , 08:45 AM

The US stocks mostly climbed in a choppy trade on Tuesday, 03 May 2022, with the Dow, the S&P500, and the Nasdaq indexes all closing slightly higher, thanks to encouraging earnings updates and fairly strong economic data.

However, market gains were limited, as investors largely staying cautious and refraining from making significant moves ahead of Federal Reserves monetary policy announcement.

The Federal Reserve began its two-day policy meeting. The Federal Open Market Committee is widely expected to raise interest rate by 50 basis points. The FOMCs statement following Wednesdays meeting is due for release at 2:00 pm ET, with Powells press conference scheduled for 2:30 pm ET. The accompanying statement is eyed for clues about how aggressively the central bank plans to tighten monetary policy.

At the close of trade, the Dow Jones Industrial Average index advanced 67.29 points, or 0.2%, to 33,128.79. The S&P500 index was up 20.10 points, or 0.48%, to 4,175.48. The tech-heavy Nasdaq Composite Index grew 27.74 points, or 0.22%, to 12,563.76.

Advancing stocks outnumbered declining ones on the NYSE exchange by 2085 to 1235 and 147 closed unchanged. In the NASDAQ, 2625 issues advanced, 2065 issues declined, and 310 issues unchanged.

Total 9 of 11 major S&P 500 sector indexes advanced, with top performing issues were energy (up 2.87%), financials (up 1.26%), real estate (up 1.25%), and materials (up 1.12%).

In company news, Shares of Western Digital surged 14.5% as Elliott Management called for a full strategic review of Western Digital (WDC) and offered $1 billion equity capital to facilitate the separation of its NAND flash memory business.

Shares of Expedia Group plummeted 14%. Travel bookings operator expects a robust travel season this summer as demand continues to recover, setting the stage for improving sales as losses narrow even amid a challenging macroeconomic and geopolitical environment.

ECONOMIC NEWS: New orders for U.S. manufactured goods surged by 2.2% in March following a revised 0.1% uptick in February, according to a report released by the Commerce Department.

Among Indian ADR, Wipro closed steady at $6.43, WNS Holdings added 0.42% to $78.24, Dr Reddys Labs added 0.21% to $53.46, INFOSYS added 0.35% to $20.22, Tata Motors added 0.92% to $28.55, HDFC Bank added 0.65% to $55.89, ICICI Bank rose 0.94% to $19.37, and Azure Power Global added 3.3% to $14.90.

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