US Market rebounds on buybacks

The US stock market finished session sharply higher on Wednesday, 07 September 2022, as investors chased for bargain buying across the board, exception being energy issues, with shares in consumer goods, retailers, tech, telecommunication, materials, and financials being notable gainers.

However, market gains were capped amid likelihood of another 75 basis points interest rate hike in the next Federal Reserve interest rate policy update scheduled for Sept. 21. In June, Fed officials projected that the benchmark rate will reach a range of 3.25% to 3.5% by year's end and roughly a half-percentage point more in 2023.

At the close of trade, the Dow Jones Industrial Average index advanced by 435.98 points, or 1.4%, to 31,581.28. The S&P500 index was up 71.68 points, or 1.83%, to 3,979.87. The tech-heavy Nasdaq Composite Index increased by 246.99 points, or 2.14%, to 11,791.90.

Shares of technology and retailers made solid gains, with Intuit rising 3.9%. Target rose 4.4% after announcing that it is dropping the mandatory retirement age for its CEO position, allowing CEO Brian Cornell to stay for three more years. Twitter gained after Delaware judge rejected Elon Musk's request to delay a trial into the disintegration of Musk's transaction to acquire the microblogging platform.

Shares of aviation companies advanced, with United Airlines gaining 5.5% after raising its revenue forecast following a busy summer travel season. American Airlines rose 5.1% and Delta Air Lines added 3.3%.

ECONOMIC NEWS: The Commerce Department said on Wednesday that the trade deficit declined 12.6% to $70.6 billion in July. Exports of goods and services rose 0.2% to $259.3 billion, while imports fell 2.9% to $329.9 billion.

Among Indian ADR, Dr Reddy's Labs added 1.81% to $53.41, Azure Power Global rose 35.38% to $4.86, WNS Holdings added 1.6% to $84.70, and Wipro was up 3% to $5.10. HDFC Bank added 2.1% to $63.28, and INFOSYS was up 2.5% at $18.43. Tata Motors added 0.35% to $28.36 and ICICI Bank added 1.08% to $22.38.

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