At closing bell, the Dow Jones Industrial Average added 299.66 points, or 1.18%, to 25,745.60. The S&P 500 index rose 33.43 points, or 1.1%, to 3,083.76. The tech-heavy Nasdaq Composite Index climbed up 107.84 points, or 1.09%, to 10,017.00.
The US share markets got a boost after the Federal Deposit Insurance Commission and Office of the Comptroller of the Currency said they are planning to loosen the restrictions imposed by the Volcker rule and allow banks to more easily make large investments into venture capital and similar funds. Shares of major banks, including JPMorgan Chase & Co, Citigroup, Goldman Sachs, and Morgan Stanley, all finished sharply higher after the reports.
Market gains were capped due to the ongoing coronavirus situation in the U.S., after the country suffered its single-biggest daily coronavirus cases surge on record. More than 45,000 new coronavirus cases were confirmed on Wednesday, a record that surpassed the previous April 26 peak by over 9,000 cases.
ECONOMIC NEWS: US Durable Goods Orders Rebound Substantially In May- US durable goods orders spiked by 15.8% in May after plunging by a revised 18.1% in April, the Commerce Department reported on Thursday. The bigger than expected rebound in durable goods orders came as orders for transportation equipment skyrocketed by 80.7% in May after plummeting by 48.6% in April. Orders for motor vehicles and parts also soared by 27.5% in May after plunging by 53.7% in the previous month. Excluding the rebound in orders for transportation equipment, durable goods orders still surged up by 4.0% in May after tumbling by 8.2% in April.
US GDP Tumbles By Unrevised 5% In Q1- US real gross domestic product tumbled by 5% in the first quarter, unchanged from the estimate provided last month and in line with expectations, a report released by the Commerce Department on Thursday showed. The steep drop in GDP in the first quarter reflects a notable turnaround from the 2.1% jump seen in the fourth quarter of 2019. The decrease was unrevised from the previous estimate as an upward revision to non-residential fixed investment was offset by downward revisions to private inventory investment, consumer spending and exports. The sharp pullback in GDP in the first quarter reflected negative contributions from consumer spending, private inventory investment, exports, and non-residential fixed investment.
CURRENCY NEWS: Major currencies were mixed against the US dollar in US trade. The Euro fell from highs near US$1.1253 to near US$1.1220 at the US close. The Aussie dollar rose from lows near US68.48 cents to highs near US68.92 cents and was near US68.85 cents at the US close. The Japanese yen eased from JPY107.03 per US dollar to JPY107.43 and was near JPY 107.15 at the US close.
Among Indian ADR, Dr Reddys Labs added 0.17% to $53.21, Vedanta rose 4.9% to $6.00, WNS Holdings inclined 0.75% to $54.89, Tata Motors rose 3.58% to $6.95, HDFC Bank grew 3.49% to $45.65, ICICI Bank added 2.4% to $9.38, INFOSYS rose 2.43% to $9.29, and Wipro added 2.19% to $3.26.
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