US Stocks rebound on bargain hunting

The US stock market finished session sharply higher on Tuesday, 14 March 2023, as investors chased for bottom fishing across the board, with financials, tech, and communication stocks leading rally, on hopes for a smaller interest rate increase by the Federal Reserve next week after drop in U.S. consumer prices in the month of February.

Also fueling hopes for a less aggressive Fed was the collapse of Silicon Valley Bank over the weekend, which has rippled through bank stocks on fears of a wider contagion. Regulators have stepped in to backstop depositors of SVB and Signature Bank, which also shut down.

At the close of trade, the Dow Jones Industrial Average index advanced 336.26 points, or 1.06%, to 32,155.40. The S&P500 index added 62.53 points, or 1.65%, to 3,919.29. The tech-heavy Nasdaq Composite Index increased 239.31 points, or 2.14%, to 11,428.15.

All 11 S&P500 sectors ended higher. Communication services was top performing sector, rising 2.75%, followed by information technology (up 2.3%), financials (up 1.9%), and consumer discretionary (up 1.7%) sectors.

Meta Platforms shares surged more than 7% after the company said it would cut 10,000 jobs in mass layoffs.

Shares of First Republic Bank soared nearly 27%, bouncing back after plunging by about 60% in the previous session.

United Airlines stock fell 5.4% after the Chicago-based carrier warned that it expects a first-quarter loss.

ECONOMIC NEWS: The Bureau of Labor Statistics reported that consumer price index rose by 0.4% in February after climbing by 0.5% in January. Core consumer prices, which exclude food and energy prices, increased by 0.5% in February after rising by 0.4% in the previous month. The report also showed the annual rate of consumer price growth slowed to 6% in February from 6.4% in January. The annual rate of growth by core consumer prices edged down to 5.5% in February from 5.6% in January.

Among Indian ADR, INFOSYS was up 0.35% at $17.33, Azure Power Global added 6% to $2.11, Wipro was down 0.2% at $4.66, ICICI Bank added 2% to $20.42. and HDFC Bank added 1.1% at $64.37. Dr Reddy's labs fell 0.35% to $53.56. WNS Holdings was up 1.5% to $90.98.

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