US Market ends higher as core capital goods orders beat expectations

The US stock market finished session firmly in black after whipsawing between positive and negative territory on Friday, 25 September 2020, on the back of bargain buying in recently battered stocks after official data showed new orders for key U.S.-made capital goods increased more than expected in August and demand for the prior month was stronger than previously estimated.

At closing bell, the Dow Jones Industrial Average index advanced by 358.52 points, or 1.34%, to 27,173.96. The S&P 500 index added 51.87 points, or 1.6%, to 3,298.46. The tech-heavy Nasdaq Composite Index rose 241.29 points, or 2.26%, to 10,913.56. For the week, the Nasdaq climbed by 1.1%, while the Dow tumbled by 1.7% and the S&P 500 fell by 0.6%.

Most sectors in the S&P 500 index were higher, led by gains in the technology and healthcare sector. Energy bucked the trend.

Data from the Commerce Department on Friday showed new orders for key U.S.-made capital goods increased more than expected in August and demand for the prior month was stronger than previously estimated, suggesting a rebound in business spending on equipment was underway after a prolonged slump. US Durable Goods Order rose 0.4% in August after jumping 11.7% in July. Durable goods orders were supported by a 0.5% rise in orders for transportation equipment. Orders for non-defense capital goods excluding aircraft, rose 1.8% last month, according to the Commerce Department. Data for July was revised up to show that core capital goods orders rose 2.5% instead of 1.9% as previously estimated.

Among Indian ADR, Wipro added 3.05% to $4.73, INFOSYS added 3.98% to $13.57, HDFC Bank added 2.08% to $48.63, ICICI Bank was up 3.23% to $9.60, and Dr Reddys Labs inclined 2.72% to $69.60. WNS Holdings rose 4.58% to $63.29, Azure Power Global inclined 8.54% to $30.58, Tata Motors added 2.61% to $8.65, and Vedanta added 5.11% to $7.41.

Powered by Capital Market - Live News