At the close of trade, the Dow Jones Industrial Average index inclined 535.10 points, or 1.63%, to 33,309.51. The S&P500 index was up by 87.77 points, or 2.13%, to 4,210.24. The tech-heavy Nasdaq Composite Index increased by 360.88 points, or 2.89%, to 12,854.80.
Wall Street equities rallied after signs of sharply decelerating U.S. inflation prompted bets that the Federal Reserve would raise rates at a slower pace than previously expected. Traders are now pricing in a 50 basis points rate hike next month, lower than the 75 basis point increase that had been expected before the consumer price index report.
Semiconductor stocks showed a substantial rebound after pulling back sharply in recent sessions. Considerable strength was also visible among computer hardware stocks. Networking stocks also turned in a strong performance on the day.
ECONOMIC NEWS: The Consumer Price Index (CPI) was unchanged last month after advancing 1.3% in June, the Labor Department said on Wednesday. Consumer prices in the US rose 8.5% year on year in July, following a 9.1% rise in June. The so-called core CPI rose 0.3% in July after climbing 0.7% in June, but increased 5.9% in the 12 months through July, the same pace as in June.
Among Indian ADR, INFOSYS added 1% to $20.38, Dr Reddy's Labs added 1% to $53.46, Azure Power Global added 4.7% to $11.57, WNS Holdings added 2.2% to $87.44, HDFC Bank added 3.5% to $65.27, and ICICI Bank inclined 3.4% to $22.04. Wipro added 1.9% to $5.47 and Tata Motors gained 4.4% to $30.84.
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