US Stocks rebound on bargain hunting

The US stocks rebounded strongly on Wednesday, 28 September 2022, with the Dow, the S&P 500, and the Nasdaq indexes all end the day significantly higher.

The strong finish of the Wall Street came as investors chased for bargain hunting across the board, after the British pound and US Treasury yields show some signs of stabilizing following their wild moves over the past few days.

Potentially lifting risk assets include comments from Chicago Fed President Charles Evans that he is "cautiously optimistic" the US economy can avoid a recession, and said he's "a little nervous" about the Fed raising interest rates too quickly.

At the close of trade, the Dow Jones Industrial Average index advanced 548.75 points, or 1.88%, to 29,683.74. The S&P500 index increased by 71.75 points, or 1.97%, to 3,719.04. The tech-heavy Nasdaq Composite Index spurted 222.13 points, or 2.05%, to 11,051.64.

The S&P 500 is now 24.3% below its record set in January, while the Dow is 21.2% below its all-time high. The Nasdaq has fallen more than 33% since hitting a record in November.

All 11 S&P 500s sector indexes finished higher, with energy issue gained the most, rising 4.4%, on tracking strength in crude oil prices. Meanwhile, communication services, consumer discretionary, materials, industrials, and healthcare gained more than 2%.

The Bank of England's planned to begin temporarily purchasing long-dated U.K. government bonds to address dysfunction in the gilt market. The BoE said the purchases would be carried out on "whatever scale is necessary" to restore orderly market conditions. In addition, the BoE postponed the selling of bonds held under the quantitative easing program to October 31. The sale was initially due to commence next week.

The moves come as U.K. bond yields have spiked after the government revealed its mini-budget including significant unfunded tax cuts. Long-term U.K. bond yields have pulled back following the news, while U.S. treasury yields are also giving back ground after surging in recent sessions.

Among Indian ADR, ICICI Bank added 1.3% to $21.07, HDFC Bank added 1% to $57.64, Tata Motors added 1.8% to 24.81, and WNS Holdings added 3.4% to $81.31. Dr Reddy's Labs added 3.44% to $52.29, INFOSYS was up 1.9% to $17.11, and Wipro gained 1.7% to $4.87. Azure Power Global fell 1.7% to $5.65.

Powered by Capital Market - Live News