US Market rebounds on bargain hunting

The US stock market finished session substantially higher on Friday, 13 May 2022, as investors once again looked to go bargain hunting following the sharp decline shown by the markets over the past five sessions.

At the close of trade, the Dow Jones Industrial Average index added 466.36 points, or 1.47%, to 32,196.66. The S&P500 index grew by 93.81 points, or 2.39%, to 4,023.89. The tech-heavy Nasdaq Composite Index advanced 434.04 points, or 3.82%, to 11,805.

All 11 major sectors of the S&P 500 ended the session green, consumer discretionary stocks enjoying the largest%age gain, surging by 4.1%, followed by information technology, rising 3.44%.

Shares of megacap tech and tech-adjacent stocks rebounded on bargain buying after selloff in recent sessions as benchmark Treasury yields climbed and investors worried the Fed might hike interest rates more aggressively than expected.

The markets have shrugged off a report from the University of Michigan showing consumer sentiment has deteriorated by much more than expected in the month of May. The report showed the consumer sentiment index tumbled to 59.1 in May from 65.2 in April.

A separate report released by the Labor Department showed imports prices were unexpectedly unchanged in the month of April. The Labor Department said import prices came in flat in April after surging by an upwardly revised 2.9% in March.

Shares of Twitter Inc dropped 9.8% following Elon Musk's tweet that he had put the $44 billion cash buyout deal on hold, as he waits for the social media company to provide data on fake accounts. Tesla Inc jumped 4.9%.

Shares of trading platform Robinhood Markets Inc surged 23% after Samuel Bankman-Fried, the chief executive and founder of cryptocurrency exchange FTX, revealed a 7.6% stake in the brokerage app company.

Warren Buffett's Berkshire Hathaway disclosed buying more shares of Occidental Petroleum, sending the oil company's shares up 6.2%.

Among Indian ADR, Azure Power Global added 4.82% to $12.40. Dr Reddy's Labs added 1.2% to $50.86, HDFC Bank gained 0.6% to $53.12, Tata Motors grew 9.4% to $26.39, and WNS Holdings added 3% to $71.13. Wipro fell by 1.13% to $6.15, INFOSYS fell 0.4% to $19.45, and ICICI Bank declined 1.17% to $17.67.

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