The US stock market finished sharp higher on Wednesday, 07 October 2020, as investors chased for bottom fishing after President Trump walked back his comments that he wanted to wait until after the election to discuss a new stimulus deal and appeared to soften his stance on a further stimulus package for American households, airlines and small businesses.
At closing bell, the Dow Jones Industrial Average index advanced 530.70 points, or 1.91%, to 28,303.46. The S&P 500 index gained by 58.50 points, or 1.74%, to 3,419.45. The tech-heavy Nasdaq Composite Index added 209.99 points, or 1.88%, to 11,364.60.
All sectors in the S&P 500 index were higher, led by gains in cyclical stocks and materials. Utilities were the worst-performing sector in the S&P 500 index
The bargain buying in the Wall Street triggered after President Trump appeared to soften his stance on a further stimulus package for American households, airlines and small businesses. With President Trump calling the talks off yesterday and then walking back some of those comments today, investors feel that the chance of a deal before the election is slim.
Also boosting sentiments was the Federal Reserve meeting minutes from the most recent open market committee meeting which showed that official is concern about the lack of additional fiscal stimulus would jeopardize and economic recovery. While Fed official kept interest rates unchanged they did pledge in September to hold rates unchanged for several years.
The meeting featured an extensive discussion about the economic outlook.
Shares of airlines, possible aid beneficiaries, rose following Mr. Trump's tweets. United Airlines Holdings rose $1.50, or 4.3%, to $36.38, American Airlines Group rose 54 cents, or 4.3%, to $13.07, and Delta Air Lines gained $1.09, or 3.5%, to $32.15.
Shares of tech companies rose even after the House Antitrust Subcommittee released a report arguing companies like Apple, Amazon. com and Alphabet have used their dominance to stifle competition. Apple rose 1.7% to $115.08 and Amazon gained 3.1% to $3,195.69. Alphabet added 0.6% to $1,459.14.
Among Indian ADR, INFOSYS added 4.68% to $14.54, Wipro added 4.41% to $4.97, Tata Motors added 0.31% to $9.73, HDFC Bank rose 1.24% to $53.95, ICICI Bank added 2.31% to $10.63, WNS Holdings added 1.09% to $65.71, and Azure Power Global rose 0.84% to $32.37. Dr Reddys Labs declined 0.69% to $68.65 and Vedanta fell 8.45% to $6.72.
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