US Stocks extend gains on debt ceiling deal

The US stocks extended gains for second straight day on Thursday, 07 October 2021, with the major three indexes- the S&P500, the Dow, and the tech-heavy Nasdaq finishing firmly higher, due to calming concerns about potential default after lawmakers reached an agreement to increase the debt ceiling in the short term.

The US Senate Majority Leader Chuck Schumer said lawmakers reached a deal on a short-term debt ceiling increase, avoiding a US government default. The deal will extend the debt ceiling through to early December.

At the close of trade, the Dow Jones Industrial Average index advanced 337.95 points, or 0.98%, to 34,754.94. The S&P500 index grew 36.21 points, or 0.83%, to 4,399.76. The tech-heavy Nasdaq Composite Index added 152.10 points, or 1.05%, to 14,654.02.

Total volume turnover on U.S. exchanges stood at 8.11 billion shares, down from yesterday's 8.72 billion shares. In the NYSE exchange, 2329 issues advanced, 982 issues declined, and 164 issues closed unchanged. In the NASDAQ, 3244 issues advanced, 1299 issues declined, and 211 issues unchanged.

Total 10 of 11 sectors ended up along with the S&P500 index, with consumer discretionary (up 1.5%) was top performing sector, followed by materials (up 1.35%), healthcare (up 1.23%), and information technology (up 0.9%), while utilities (down 0.53%) was bottom performing sector.

ECONOMIC NEWS: US Jobless Claims Pull Back To 326,000-US initial jobless claims fell to 326,000 in the week ended October 2nd, a decrease of 38,000 from the previous week's revised level of 364,000, according to the Labor Department report released on Thursday.

COMMODITY NEWS: Crude oil prices rebounded on Thursday after the US Department of Energy said it has no plans "at this time" to tap into the nation's oil reserves to help quell rising gasoline prices. The Brent crude price rose by US87 cents or 1.1% to US$81.95a barrel. The US Nymex crude price also added US87 cents or 1.1% to US$78.30 a barrel.

Among Indian ADR, Wipro added 1.36% to $8.92, INFOSYS fell 1.43% to $22.77, Dr Reddys Labs fell 0.56% to $65.49, HDFC Bank added 0.84% to $73.61, ICICI Bank inclined 1.12% to $18.90, and Tata Motors grew 15.26% to $25.75. Vedanta added 1.69% to $15.66. WNS Holdings added 0.7% to $82.77.

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