US Stocks extends gain on bargain hunting

The US stock market finished higher second session in row on Friday, 14 May 2021, as investors continued bargain hunting of shares hammered by the week's volatility.

At the close of trade, the Dow Jones Industrial Average index advanced 360.68 points, or 1.06%, to 34,382. The S&P 500 index was up 61.35 points, or 1.49%, at 4,174. The tech-heavy Nasdaq Composite Index added 304.99 points, or 2.32%, to 13,430. For the week, the Nasdaq tumbled by 2.3%, while the S&P 500 and the Dow slumped by 1.4% and 1.1%, respectively.

All 11 S&P 500 sectors closed higher, with energy (up 3.16%), information technology (up 2.12%), consumer discretionary (1.8%), communication services (1.69%), industrials (up 1.34%), financials (up 1.54%), and materials (up 1.19%) sectors being notable gainers.

Fears of rising prices burst into the fore this week and spooked markets, and despite assurances from the Fed it does not expect to tighten policy anytime soon, some investors worry policymakers may be misjudging inflation risks.

A report from the Commerce Department released on Friday showed retail sales were virtually unchanged in April after soaring by an upwardly revised 10.7% in March, as the boost from stimulus checks wore off, further bolstering arguments that the economic recovery was far from roaring, and eased recent concerns about the Federal Reserve tightening monetary policy are not imminent.

Among Indian ADR, HDFC Bank added 0.82% to $70.08, ICICI Bank added 2.35% to $16.54, WNS Holdings added 0.56% to $69.54, Wipro rose 0.54% to $7.39, and INFOSYS added 1.57% to $18.16. Dr Reddys Labs fell 0.74% to $72, and Vedanta fell 0.59% to $15.07, and Tata Motors fell 1.94% to $21.24.

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