US Market rebounds on pullback in commodities, bargain buying

The US stock market finished session higher on Wednesday, 09 March 2022, as investors chased for undervalued stocks after suffering heavy losses in recent sessions.

Meanwhile, buying momentum spirited further by pullback in crude oil prices from the peaks after reports that the United Arab Emirates will call on fellow OPEC members to boost production, potentially easing some of the supply concerns caused by sanctions on Russia after its conflict with Ukraine.

Investors were awaiting Thursday's report on U.S. consumer prices as a key data release ahead of the Fed's March 15-16 meeting.

At the close of trade, the Dow Jones Industrial Average index advanced 653.61 points, or 2%, to 33,286.25. The S&P500 index added 107.18 points, or 2.57%, to 4,277.88. The tech-heavy Nasdaq Composite Index grew 459.99 points, or 3.59%, to 13,255.55.

Advancing stocks outnumbered declining ones on the NYSE exchange by 2498 to 835 and 134 closed unchanged. In the NASDAQ, 3681 issues advanced, 1023 issues declined, and 262 issues unchanged.

Total 9 of 11 major S&P 500 sector indexes advanced, with top gaining issues were information technology (up 3.98%), financials (up 3.61%), communication services (up 3.45%), materials (up 3%), while bottom performing issue included energy (down 3.18%).

Travel and textile stocks rallied. Cruise lines Carnival and Royal Caribbean added 8.8% and 5.6%, respectively. American Airlines Group and United Airlines Holdings added 5.9% and 8.3%, respectively. Tapestry Inc. gained 11%

Brent-crude futures, the international benchmark, declined $16.84 a barrel, or 13% to $111.14, the largest one-day percentage decline since April 2020.

The jump in equity markets spurred investors to pull back from haven assets Wednesday. The ICE US Dollar index, which tracks the currency against a basket of others, lost 1%. The yield on 10-year Treasury notes edged up to 1.944% from 1.870% Tuesday. Yields and bond prices move in opposite directions.

Also, gold, another asset that investors perceive as relatively safe, plunged $55.10 to $1,988.20 an ounce.

Among Indian ADR, Wipro added 1.6% to $7.60, HDFC Bank added 7% to $59.10, ICICI Bank added 6.55% to $17.90, Tata Motors added 7% to $26.64, and WNS Holdings added 4.7% to $84.28, and Dr Reddy's Labs added 2.06% to $51.47. INFOSYS rose 2.44% to $23.90 and Azure Power Global rose 3.27% to $20.21.

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