US Market extends gain on bargain buying

The US stocks moved sharply higher on Thursday, 26 May 2022, with the Dow, the Nasdaq, and the S&P 500 all closing in positive territory.

The strength on Wall Street was due to investors continued picking up stocks at relatively reduced levels following recent weakness as well as better than expected initial jobless claims.

At the close of trade, the Dow Jones Industrial Average index rose by 516.91 points, or 1.61%, to 32,637.19. The S&P500 index added 79.11 points, or 2%, to 4,057.84. The tech-heavy Nasdaq Composite Index increased by 305.91 points, or 2.68%, to 11,740.65.

Total ten of the 11 major S&P sectors ended the session green, with consumer discretionary ( up 4.8%), information technology (up 2.45%), financials (up 2.25%) and communication services (up 2.07%) issues enjoying the largest percentage gain.

ECONOMIC NEWS: The Labor Department released a report showing initial jobless claims dipped to 210,000, a decrease of 8,000 from the previous week's unrevised level of 218,000.

Meanwhile, a separate report from the Commerce Department showed real domestic product slid by 1.5% in the first quarter compared to the previously reported 1.4% drop.

The National Association of Realtors also released a report showing pending home sales plummeted by 3.9% to 99.3 in April after tumbling by 1.6% to a revised 103.3 in March.

Among Indian ADR, Tata Motors added 2.83% to $28.01, Wipro added 3% to $5.94, INFOSYS added 1.7% to $18.45, WNS Holdings added 1.35% to $72.18, ICICI Bank added 2% to $18.99, Azure Power Global rose 0.26% to $15.14, and HDFC Bank added 0.94% to $56.88. Dr Reddy's Labs fell 0.36% to $55.27.

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