US Wall Street gains before Fed meet

The US stocks started the new week and the month with firm footing, with the Dow, the S&P500, and the Nasdaq indexes closing volatile session notably above boundary line on Monday, 02 May 2022, thanks to bottom fishing in to recently battered stocks amid bets they had been overly beaten down.

However, market gains were capped after unexpectedly decline in Institute for Supply Management's US manufacturing index for April and on caution ahead of this week's Federal Reserve policy meeting.

At the close of trade, the Dow Jones Industrial Average index surged 84.29 points, or 0.26%, to 33,061.50. The S&P500 index was up 23.45 points, or 0.57%, to 4,155.38. The tech-heavy Nasdaq Composite Index added 201.38 points, or 1.63%, to 12,536.02.

Declining stocks outnumbered advancing ones on the NYSE exchange by 1898 to 1428 and 188 closed unchanged. In the NASDAQ, 2764 issues advanced, 2033 issues declined, and 333 issues unchanged.

Total 5 of 11 major S&P 500 sector indexes advanced, with top performing issues were communication services (up 2.43%), energy (up 1.37%), and consumer discretionary (up 1.36%), while worst performing issues included utilities (down 3.1%), real estate (down 2.55%), and information technology (down 1.95%).

Shares of recently battered companies led the market rally on bargain buying. Facebook parent Meta Platforms Inc climbed 5.3% on Monday after falling 9.8% last month. Nvidia Corp also jumped 5.3%, while Microsoft Corp gained 2.5%, after sharp declines in April. Tesla Inc, Amazon.com Inc and Apple Inc all ended between 0.2% and 3.7% higher.

Activision Blizzard shares climbed 3.3% after Warren Buffett said Berkshire Hathaway Inc has taken a 9.5% stake in the "Call of Duty" game maker.

Align Technology shares jumped 6.5% after announcement that it entered into an accelerated repurchase program to buy back $200 million of its common shares under its existing $1 billion buyback plan.

Shares of Pfizer Inc fell 1.5% after a large trial found its COVID-19 oral antiviral treatment Paxlovid was not effective at preventing coronavirus infections in people living with someone infected with the virus.

Shares of Global Payments slumped 9.2% as the payments-technology firmreported better-than-expected earnings in the first quarter but expects full-year adjusted revenue to be at the low end of its forecast range amid pressure from currency rates and Russia.

Spirit Airlines shares slid 9.4% after the ultra low-cost carrier rejected JetBlue Airways Corp's $33-per-share takeover offer, saying it had a low likelihood of winning approval from government regulators.

ECONOMIC NEWS: The Institute for Supply Management's US manufacturing index fell to 55.4 in April from 57.1 in March.

Also, report released by the Commerce Department showed construction spending in the U.S. inched up by 0.1 percent to an annual rate of$1.731 trillion in March after rising by 0.5 percent to a revised rate of $1.729 trillion in February.

Among Indian ADR, Wipro fell 0.16% to $6.43, WNS Holdings fell 0.59% to $77.91, and Dr Reddy's Labs fell 0.61% to $53.35. INFOSYS added 1.41% to $20.15, Tata Motors added 0.28% to $28.29, HDFC Bank added 0.58% to $55.53, ICICI Bank rose 0.79% to $19.19, and Azure Power Global added 2.63% to $14.42.

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