At the close of trade, the Dow Jones Industrial Average index advanced by 303.70 points, or 1%, to 30,668.53. The S&P500 index was up 54.51 points, or 1.46%, to 3,789.99. The tech-heavy Nasdaq Composite Index added 270.81 points, or 2.5%, to 11,099.15.
Total 10 of 11 major S&P sectors ended the session green, with consumer discretionary (up 3%), communication services (up 2.4%), real estate (up 2.3%), and information technology (up 1.2%) issues enjoyed the largest%age gains.
The Federal Reserve revealed that it has decided to raise the target rate for the federal funds rate by 75 basis points to 1.5% to 1.75%, marking the biggest rate hike since 1994, citing its goals of maximum employment and inflation at a rate of 2% over the longer run. The Fed also said it will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities. In its assessment of the U.S. economy, the Fed said overall economic activity appears to have picked up after edging down in the first quarter.
Investors appeared to take comfort from the view that the U.S. economy will benefit in the long run if prices are brought under control in the short term. Fed projections showed economic growth slowing to a below-trend rate of 1.7%, and policymakers expect to cut interest rates in 2024.
ECONOMIC NEWS: Commerce Department released a report showing retail sales fell by 0.3% in May after climbing by a downwardly revised 0.7% in April. Excluding the steep drop in sales by motor vehicles and parts dealers, retail sales rose by 0.5% in May following a 0.4% increase in April.
A separate report released by the Labor Department showed U.S. import prices climbed by 0.6% in May after rising by a revised 0.4% in April. Meanwhile, the report showed export prices surged by 2.8% in May following a 0.8% increase in April.
Among Indian ADR, WNS Holdings added 3% to $71.36, Azure Power Global added 2.5% to $12.54, Tata Motors added 3.2% to $26.81, and INFOSYS added 0.3% to $18.29. ICICI Bank added 1.8% to $17.76, and HDFC Bank added 0.3% to $52.84. Dr Reddy's Labs added 1.5% to $56.13.Wipro fell 0.5% to $5.62.
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