US Market rebounds on upbeat earnings, economic data

The US stock market finished session sharply higher on Wednesday, 03 August 2022, on the back of gains across the sectors, exception being energy issue, thanks to upbeat economic data, corporate guidance, and easing geopolitical concerns.

At the close of trade, the Dow Jones Industrial Average index advanced 416.33 points, or 1.29%, to 32,812.50. The S&P500 index added 63.98 points, or 1.56%, to 4,155.17. The tech-heavy Nasdaq Composite Index increased by 319.40 points, or 2.59%, to 12,668.16 on solid reports from Moderna Inc. and PayPal Holdings Inc.

Total 10 of 11 S&P500 sectors closed higher, with information technology issue enjoyed largest percentage gain, rising 2.7%, followed by consumer discretionary (up 2.5%) and communication services (up 2.5%), while energy issue suffered the heavy losses, falling 3%.

The Institute for Supply Management services PMI rose to 56.7 in July from 55.3 in June, with a reading above 50 indicating growth in the sector.

A separate report from the Commerce Department showed factory orders shot up by 2 percent in June after surging by an upwardly revised 1.8 percent in May.

Economic data showed an unexpected acceleration of services activity and a robust increase in factory orders, suggesting that the economy was healthy enough to withstand the hawkish monetary policy from the U.S. Federal Reserve.

Markets are also somewhat calmer as US-China tensions simmered after House Speaker Nancy Pelosi left Taiwan. Her visit had provoked an angry response from China, and markets were on the edge ahead of her arrival on Tuesday.

Among Indian ADR, INFOSYS added 3.1% to $20.10, HDFC Bank added 1.6% to $63.09, Dr Reddy's Labs added 1.4% to $52.09, ICICI Bank inclined 1.6% to $21.01, and Wipro added 2.2% to $5.49. Azure Power Global fell 0.17% to $11.98, Tata Motors fell 1.4% to $29.94, and WNS Holdings fell 0.1% to $85.70.

Powered by Capital Market - Live News