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US Stocks surge on economic recovery hopes

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Capital Market 

The US equity market finished session higher on Monday, 08 June 2020, as risk sentiments boosted up on growing optimism about the pace of recovery after Friday's better-than-expected jobs report. Meanwhile, buying was further propelled by reopening of the U. S. economy and drug makers announcement of promising test results for coronavirus treatments and vaccines.

At closing bell, the Dow Jones Industrial Average climbed 461.46 points, or 1.7%, to 27,572.44, its sixth straight gain.. The S&P 500 - a gauge of US retirement and education savings accounts, rose 38.46 points, or 1.2%, to 3,232.39. The tech-heavy Nasdaq Composite Index gained 110.66 points, or 1.1%, to 9,924.74, a new all-time closing record.

The Nasdaq has climbed 44.7% from its March 23 bottom.

The S&P 500 remains about 4.5% below its record high close, while the Dow Jones Industrial Average is about 6.7% below its record close.

US stocks rallied again on Monday, as closely watched monthly jobs report on Friday showed an unexpected fall in the unemployment rate to 13.3% May 2020 from 14.7% in April 2020, bolstering views that the worst of the economic damage from the virus outbreak could be over.

Stocks continued to rise further as drug makers announced promising test results for coronavirus treatments and vaccines.

Investors also have been heartened by efforts to reopen the U. S. economy in the aftermath of pandemic-related closures. Reopening plans are in various stages in all 50 U. S. states. New York City, one of the regions hardest hit by coronavirus, launched the first phase of its reopening on Monday, including the restart of construction and limited retail operations.

Shares of oil and airline companies, industries that were both ravaged by lockdown measures instituted to stem the pandemic, outperformed the broader market on Monday.

Among Indian ADR, ICICI Bank fell 0.82% to $9.69, HDFC Bank fell 3.74% to $45.83, Vedanta fell 0.53% to $5.62, WNS Holdings fell 1.8% to $55.50, and Dr Reddys Labs fell 1.38% to $52.31, while Tata Motors rose 4.7% to $7.80, INFOSYS added 1.92% to $9.56, and Wipro added 4.2% to $3.47.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Tue, June 09 2020. 08:06 IST