US Stocks rebound on bargain hunting

The US stocks mostly rebounded in a volatile trade on Thursday, 01 September 2022, with the Dow and the S&P500 indexes eke out modest gains, while the Nasdaq index closed below boundary line. The late hour rebound came as investors chased for recently battered stocks.

However, gains were limited amid lingering concerns about aggressive interest rate hikes from the Federal Reserve and the impact on the global economy. Also weighing sentiment was weaker than expected U.S. manufacturing activity growth data and U.S. unemployment benefits report.

At the close of trade, the Dow Jones Industrial Average index advanced 145.99 points, or 0.46%, to 31,656.42. The S&P500 index was up 11.85 points, or 0.3%, to 3,966.85. The tech-heavy Nasdaq Composite Index decreased by 31.08 points, or 0.26%, to 11,785.13.

 

Shares of Nvidia stumbled around 8% after the graphics chipmaker warned approximately $400 million in potential sales to China could be impacted by new U.S. licensing requirements on shipments of some of its most advanced chips. The U.S. government told the company on Aug. 26, about a new license requirement for future exports to China, including Hong Kong, to reduce the risk that the products may be used by the Chinese military. Nvidia said the restriction would affect the A100 and H100 products, which are graphics processing units sold to businesses.

Shares of chipmaker Advanced Micro Devices also moved notably lower after saying some of its chips would also be impacted by the new requirements.

ECONOMIC NEWS: The Institute for Supply Management's factory sector Purchasing Managers' Index was unchanged from the month before in August at a level of 52.8. A reading above 50 indicates expansion in manufacturing. A sub-index tracking levels of production slipped from 53.5 for July to 50.4 in August, but that for new orders improved from 48.0 to 51.3. Subindices for employment and order backlogs also improved, from 49.9 to 54.2 and from 51.3 to 53.0, respectively.

The Labor Department released a report on Thursday showing initial jobless claims edged down to 232,000 in the week ended August 27th, a decrease of 5,000 from the previous week's revised level of 237,000.

Among Indian ADR, Dr Reddy's Labs added 1.45% to $53.05, Azure Power Global rose 2.5% to $3.68, WNS Holdings added 0.3% to $84.52, and Wipro was up 1.4% to $5.08. HDFC Bank added 1.18% to $61.77, and INFOSYS was up 0.66% at $18.42. Tata Motors added 0.9% to $29.26, and ICICI Bank added 0.5% to $21.95.

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