US Stocks gain after Fed officials comments

The US stock market finished session higher on Wednesday, 26 May 2021, as investor sentiment was encouraged by signs of the steady reopening of the economy after an increasing number of Americans receive a coronavirus vaccine. Meanwhile, sentiments also boosted up after several Federal Reserve officials statement that any inflation will be transitory and the Fed will maintain its current dovish monetary policy stance.

At the close of trade, the Dow Jones Industrial Average index advanced 10.59 points, or 0.03%, to 34,323. The S&P 500 index added 7.86 points, or 0.19%, at 4,196. The tech-heavy Nasdaq Composite Index grew 80.82 points, or 0.59%, to 13,738.

Total 9 out of 11 S&P 500 sectors closed up, with energy (up 0.93%), consumer discretionary (up 0.9%), communication services (up 0.58%), financials (up 0.3%), and industrials (up 0.3%) sectors being notable gainers, while healthcare issue was notable loser.

Multiple Fed officials have commented in recent days on inflation, maintaining the central bank views it as transitory and has the tools to clamp down if it begins to run too hot. However, they have also edged closer to starting the debate about tapering, or reducing, its massive fiscal stimulus plan.

Shares of crude oil service companies rallied as the price of crude oil turned higher over the course of the day, with crude for July delivery inching up $0.14 to $66.21 a barrel after falling as low as $65.25 a barrel.

Shares of companies linked to a recovering economy gained amid signs of the steady reopening of the economy as an increasing number of Americans receive a coronavirus vaccine. Shares of Royal Caribbean advanced after the cruise operator became the first to receive approval from the Centers for Disease Control and Prevention to begin test sailing in U.S. waters. Norwegian Cruise Line Holdings also moved to the upside after announcing the next phase of its planned resumption of cruising across its three cruise lines.

Shares of drug retailers such as Walgreens, CVS Health and Rite Aid Corp declined after a report Amazon is considering the launch of physical pharmacies in the United States.

Among Indian ADR, Tata Motors added 1.82% to $21.76, INFOSYS added 2.83% to $19.26, ICICI Bank added 1.7% to $17.97, Wipro added 2.89% to $7.83, and HDFC Bank added 1.3% to $73.96. Dr Reddys Labs was down 1.07% to $71.97, Vedanta fell 0.67% to $14.85, and WNS Holdings fell 0.51% to $74.08.

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