US Market gains as investors absorb Fed minutes

The US shares mostly moved higher on Wednesday, 06 July 2022, with major averages all finishing session on the positive side after moving along the flat line for much of the day.

The gains on the Wall Street came as investors digested the minutes of the June 14-15 Federal Reserve's latest monetary policy meeting detailed the central bank was committed to bringing down inflation.

At the close of trade, the Dow Jones Industrial Average index advanced 69.86 points, or 0.23%, to 31,037.68. The S&P500 index was up 13.69 points, or 0.36%, to 3,845.08. The tech-heavy Nasdaq Composite Index gained 39.61 points, or 0.35%, to 11,361.85.

Total 8 of 11 major S&P sectors ended the session higher, with utilities (up 1%) sector enjoyed largest percentage gain, followed by information technology (up 0.9%), healthcare (up 0.66%), materials (up 0.6%), and industrial (up 0.6%) issues. Energy (down 4%) sector suffered largest percentage losses, as energy prices pared early gains and fell into the red amid worries about outlook for energy demand.

Investors digested new clues on the US central bank's approach to rate policy and its inflation fight detailed in the minutes from the latest Federal Reserve meeting. The minutes were a firm restatement of the Fed's intent to get prices under control to address stubborn inflation and concern about lost faith in the central bank's power.

The minutes said the members of the central bank said there would be another 50 or 75-basis point move in the July meeting. The minutes also said that the participants continued to anticipate that ongoing increases in the target range for the federal funds would be appropriate to achieve the monetary policy committee's objectives.

Uber Technologies Inc and DoorDash Inc fell 4.5% and 7.4%, respectively, after Amazon.com Inc agreed to take a 2% stake in Just Eat Takeaway.com's struggling US food delivery business, Grubhub.

Rivian Automotive Inc gained 10.4% after the electric-vehicle maker's deliveries nearly quadrupled as it ramped up production.

ECONOMIC NEWS: Markit Economics said the S&P Global US Composite PMI was revised higher to 52.3 in June from a preliminary reading of 51.2, down from 53.6 in May. The S&P Global US Services PMI was revised higher to 52.7 in June from a preliminary score of 51.6, and down from 53.4 in May

Among Indian ADR, INFOSYS added 1.4% to $18.93, WNS Holdings added 0.6% to $76.11, ICICI Bank added 1.2% to $18.48, HDFC Bank added 2.4% to $57.13, and Dr Reddy's Labs added 0.2% to $55.98. Tata Motors fell 0.7% to $26.14, Wipro fell 1.9% to $5.31, and Azure Power Global declined 5.5% to $11.60.

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