US Market extends rebound as Omicron fears ease

The US stock market finished higher for second consecutive session on Tuesday, 07 December 2021, as investors continued hunting on heavily battered shares on receding concerns about the impact of the Omicron variant of the coronavirus after initial data showed the surge in omicron cases hasn't overwhelmed hospitals. Stocks gained across the board, with shares of technology sector paced the rebound, followed by financials, realty, consumer discretionary, energy and materials stocks.

At the close of trade, the Dow Jones Industrial Average index advanced 492.40 points, or 1.4%, to 35,719.43. The S&P500 index rose 95.08 points, or 2.07%, to 4,686.75. The tech-heavy Nasdaq Composite Index gained 461.76 points, or 3.03%, to 15,686.92.

Total volume turnover on U.S. exchanges stood at 9.95 billion shares, down from yesterday's 10.19 billion shares. Advancing stocks outnumbered declining ones on the NYSE exchange by 2682 to 713 and 109 closed unchanged. In the NASDAQ, 3627 issues advanced, 1085 issues declined, and 194 issues unchanged.

The market mood has been notably more upbeat this week after several health experts across the globe, including the U.S.'s Dr. Anthony Fauci, have said omicron symptoms appear milder, so far. Additionally, research showed that a Covid-19 vaccine from GlaxoSmithKline Plc and Canada's Medicago Inc. was effective against multiple variants of the disease.

ECONOMIC NEWS: US Labor Productivity Tumbles 5.2% In Q3-US labor productivity plunged by even more than initially estimated in the third quarter, according to revised data released by the Labor Department on Tuesday. The Labor Department said labor productivity tumbled by 5.2% in the third quarter compared to the previously reported 5% nosedive. The steep drop in productivity, a measure of output per hour, came as hours worked spiked by 7.4% compared to a 1.8% jump in output. Meanwhile, the report showed the spike in unit labor costs during the third quarter was upwardly revised to 9.6% from 8.3%.

US Trade Deficit Narrows Significantly In October -US trade deficit decreased to $67.1 billion in October from a revised $81.4 billion in September, the Commerce Department reported on Tuesday. The narrower trade deficit came as the value of exports soared by 8.1% to $223.6 billion in October after tumbling by 3% to $206.8 billion in September. Meanwhile, the Commerce Department said the value of imports climbed by 0.9% to $290.7 billion in October after rising by 0.6% to $288.2 billion in September.

Among Indian ADR, Wipro added 3.08% to $8.71, INFOSYS added 3.64% to $23.06, Azure Power Global added 5.56% to $18.99, and Dr Reddys Labs added 1.43% to $60.35. HDFC Bank gained 2.14% to $67.29, ICICI Bank added 4.43% to $19.11, WNS Holdings rose 1.5% to $86.05, and Tata Motors rose 3.28% to $31.81.

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