US Market pares gain after Fed minutes

The US stock market finished the session in positive territory on Wednesday, 04 January 2023, after swinging back and forth across the unchanged line, as the minutes of the Federal Reserve's December monetary policy reinforced expectations the central bank is likely to continuing raising interest rates.

At the close of trade, the Dow Jones Industrial Average index advanced 133.40 points, or 0.4%, to 33,269.77. The S&P500 index added 28.83 points, or 0.75%, to 3,852.97. The tech-heavy Nasdaq Composite Index increased 71.78 points, or 0.69%, to 10,458.76.

All 10 sectors ended higher along with the S&P500 Index. Real estate was the top performing sector, rising 2.3%, followed by materials (up 2.3%), materials (up 1.7%), financials (up 1.6%), and consumer discretionary (up 1.4%) sectors.

Federal Reserve minutes from its December meeting showed many officials highlighted the need to curb inflation without slowing the economy too much, heartening some investors. However, policy makers also worried that a hot jobs market and looser financial conditions, including market expectations for rate cuts this year, could imperil the task of damping rising consumer prices.

ECONOMIC NEWS: The Institute for Supply Management released a report showing manufacturing PMI edged down to 48.4 in December from 49.0 in November, with a reading below 50 indicating a contraction.

Among Indian ADR, HDFC Bank fell 0.8% to $67.84, Wipro fell 0.4% to $4.69, INFOSYS was down 0.7% at $18.10, and Tata Motors sank 1.8% at $23.16. WNS Holdings added 1.6% to $80.53, ICICI Bank rose 0.05% to $21.95, Dr Reddy's labs added 0.6% to $52.04, Azure Power Global added 2.4% to $4.24.

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