At the close of trade, the Dow Jones Industrial Average index surged 1,201.43 points, or 3.7%, to 33,715.37. The S&P500 index spurted 207.80 points, or 5.54%, to 3,956.37. The tech-heavy Nasdaq Composite Index increased 760.97 points, or 7.35%, to 11,114.15.
All 11 sectors of S&P500 index advanced, with information technology sector was outperformed with gains of 8.3%, followed by consumer discretionary (up 7.7%), real estate (up 7.7%), materials (up 5.6%), and financials (up 5.1%) issues.
The Labor Department said its consumer price index rose by 0.4% in October, matching the increase seen in September. The annual rate of growth in consumer prices also slowed to 7.7% in October from 8.2% in September.
On a core basis, excluding food and energy, prices edged up by 0.3% in October after advancing by 0.6% in September. The annual rate of growth in core prices also slowed to 6.3% in October from 6.6% in September.
The lower-than-expected readings ease pressure on the Fed to maintain its policy of aggressive interest rate rises to combat inflation. The central bank has delivered four consecutive rises of 0.75 percentage points this year in an attempt to slow price growth. markets now expect a smaller 0.5 percentage point rise at the Fed's meeting in December.
Traders are also assessing the incoming results of this week's US midterm elections. One day after polls closed, elections in multiple states were yet to be called, leaving control of both the Senate and House up in the air.
Among Indian ADR, INFOSYS was up 3.9% at $19.20, HDFC Bank added 3.8% to $66.67, Wipro added 4.2% to $4.97, ICICI Bank added 3.1% to $23.31, Azure Power Global added 11% to $5.96, and Dr Reddy's Labs grew 2.6% to $57.45. WNS Holdings grew 2.4% to $83.73. Tata Motors sank 0.3% to $26.33.
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