US Market rebounds on buyback, BofA results, UK reversal

The US stock market finished session sharp higher on Monday, 17 October 2022, with major averages all posting strong gains on the day, as investors hunting stocks at reduced levels following the steep drop seen on Friday. Meanwhile, better than expected earnings from Bank of America also lifted up sentiments.

The strength on Wall Street also came following news the U.K. government is reversing course on previously announced fiscal plans. Britain's new finance minister Jeremy Hunt reversed almost all of the tax measures announced by his predecessor Kwasi Kwarteng in the mini-budget on September 23.

At the close of trade, the Dow Jones Industrial Average index advanced 550.99 points, or 1.86%, to 30,185.82. The S&P500 index grew 94.88 points, or 2.65%, to 3,677.95. The tech-heavy Nasdaq Composite Index increased 354.41 points, or 3.43%, to 10,675.80.

All 11 S&P500 sectors advanced, with consumer discretionary sector gaining the most, up 4.2%, followed by real estate, communication services, and information technology with gain of 3.9%, 3.3%, and 3.1%, respectively.

Bank of America Corp shares surged as the lender's net interest income was buoyed by rising interest rates in the quarter, even though it added $378 million to its loan-loss reserves to buttress against a softening economy. Fellow financial Bank of NY Mellon Corp also benefited from higher interest rates, and its shares also climbed.

Among Indian ADR, Dr Reddy's Labs added 2% to $52.79, HDFC Bank added 3.4% to $59.94, and INFOSYS was up 2% at $18.16. Tata Motors added 3.1% to $24.21, ICICI Bank added 3.9% to $21.81, and WNS Holdings added 2.6% to $83.63. Azure Power Global rose 2.4% to $4.79 and Wipro added 4.3% to $4.63.

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