US Stocks rebound on bargain buying

The US stocks rebounded on Wednesday, 15 September 2021, with all three major U.S. stock indexes closed firmly into positive territory, as bargain hunting emerged following the downward trend seen over the past several sessions. However, concerns about slowing economic recovery and uncertainty over higher taxes capped market gains.

At the close of trade, the Dow Jones Industrial Average index advanced 236.82 points, or 0.68%, to 34,814.39. The S&P 500 index rose 37.65 points, or 0.85%, to 4,480.70. The tech-heavy Nasdaq Composite Index was up 123.77 points, or 0.82%, to 15,161.53.

Total 10 of 11 S&P500 sectors inclined, exception being utilities (down 0.15%), with energy (up 3.82%) sector was top gainer. Meanwhile notable gainers included industrials (up 1.12%), materials (up 1.1%), financials (up 0.93%), and information technology (up 0.89%) sectors.

Total volume turnover on U.S. exchanges was 8.73 billion shares, up from previous session volume of 8.52 billion shares. In the NYSE exchange, 2292 issues advanced, 1005 issues declined, and 148 issues closed unchanged. In the NASDAQ, 2806 issues advanced, 1635 issues declined, and 218 issues unchanged.

U.S. import prices fell for the first time in 10 months in August amid a decline in the costs of petroleum products, further evidence that inflation had probably peaked. While signs of cooling inflation have made early tapering by the Federal Reserve seem unlikely, they have also raised the question of when exactly the central bank would begin scaling back its massive pandemic-induced stimulus plan.

Energy stocks were top gainers in the Wall Street on the back of surge in crude oil prices, with EOG Resources (+8.3%) and Diamondback Energy (+7.8%) both surging.

Microsoft shares gained 1.7% after announcing a dividend increase and a large US$60 billion share repurchase program.

Wynn Resorts shares slid 6.3% as the government of Macau looks to increase regulatory scrutiny over casinos. The Dow Jones index rose by 237 points or

ECONOMIC NEWS: Industrial production increased 0.4% in August, after climbing by a downwardly revised 0.8% in July, according to Federal Reserve data released Wednesday. The Fed noted late-month shutdowns related to Hurricane Ida held down the gain in industrial production by an estimated 0.3%age points.

Also, report from the Labor Department showed that the U.S. import prices decreased by 0.3% in August after climbing an upwardly revised 0.4% in July. The decrease lowered the year-on-year increase to 9% from 10.3% in July. Meanwhile, the export prices increased 0.4% in August after jumping by a downwardly revised 1.1% in July.

Among Indian ADR, Dr Reddys Labs added 0.75% to $67.37, WNS Holdings added 0.49% to $81.85, Vedanta added 3.4% to $17.03, ICICI Bank added 1.41% to $19.46, Tata Motors added 2.73% to $21.11, Wipro added 0.94% to $9.64, and INFOSYS added 1.56% to $23.37. HDFC Bank fell 0.58% to $73.66.

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