US Stocks rise on economic recovery hopes

The US stock market finished session higher on Tuesday, 23 June 2020, as investor sentiment was bolstered by optimism over a quick recovery for the domestic economy after better than expected retail sales and employment data. However, market gain were capped after report from the National Association of Realtors showing a continued nosedive in existing home sales in May and amid evidence of an acceleration of COVID-19 infections in half of all U.S. states and elsewhere in the world.

At closing bell, the Dow Jones Industrial Average advanced 153.50 points, or 0.59%, to 26,024.96+. The S&P 500 index added 20.12 points, or 0.65%, to 3,117.86. The tech-heavy Nasdaq Composite Index rose 110.35 points, or 1.1%, to 10,056.47.

The US stocks commenced trading with firm footing on optimism about economic recovery in the wake of recent strong data on employment and retail sales.

However, market gain were capped after report from the National Association of Realtors showing a continued nosedive in existing home sales in May and amid evidence of an acceleration of COVID-19 infections in half of all U.S. states and elsewhere in the world.

New cases have increased in the US as states reopen from lockdowns that began in mid-March to contain the disease. The US reported more than 30,000 new COVID-19 cases on Friday and Saturday, the highest levels since May 1, according to Johns Hopkins University data.

According to the World Health Organization, more than 183,000 new coronavirus infections were reported globally on Sunday, the biggest single-day increase since the outbreak began.

Technology stocks led the broader market higher, with shares of Amazon, Adobe, and Square gaining. Stay-at-home stocks also rose, with Netflix, Zoom, and Peloton all being notable gainers.

ECONOMIC NEWS: The National Association of Realtors data showed that existing home sales plunged by 9.7% to an annual rate of 3.91 million in May after plummeting by 17.8% to a rate of 4.33 million in April.

Among Indian ADR, Dr Reddys Labs added 0.11% to $53.24, Vedanta grew 6.07% to $5.77, WNS Holdings rose 1.58% to $55.38, Tata Motors grew 3.03% to $6.79, HDFC Bank rose 0.07% to $44.72, and ICICI Bank grew 1.69% to $9.63, while INFOSYS fell 0.11% to $9.15 and Wipro lost 1.52% to $3.25.

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