US Wall Street surges on bargain hunting

The US stock market finished session sharp higher on Monday, 03 October 2022, as buying gathered momentum on easing concerns about aggressive tightening by the Fed after data showed the pace of U.S. manufacturing activity to have grown in September at its slowest pace in 30 months. Market sentiments also underpinned after the UK government walked back part of its controversial tax cut plan.

At the close of trade, the Dow Jones Industrial Average index advanced 765.38 points, or 2.66%, to 29,490.89. The S&P500 index increased by 92.81 points, or 2.59%, to 3,678.43. The tech-heavy Nasdaq Composite Index spurted 239.82 points, or 2.27%, to 10,815.43.

 

All 11 S&P 500s sector indexes finished higher, with energy, materials, industrials, and information technology issues gaining over 3%.

Shares of energy companies advanced on tracking a jump in crude prices as sources said the Organization of the Petroleum Exporting Countries and its allies are considering their biggest output cut since the start of the COVID-19 pandemic. Oil majors Exxon Mobil Corp and Chevron Corp rose more than 5%.

Megacap growth and technology companies such as Apple Inc and Microsoft Corp rose over 3% respectively, while banks advanced 3%.

Tesla plunged more than 8% after it sold fewer-than-expected vehicles in the third quarter as deliveries lagged way behind production due to logistic hurdles. Tesla delivered a record 343,830 cars worldwide in the third quarter.

ECONOMIC NEWS: The Institute for Supply Management report showed that manufacturing PMI fell to 50.9 in September from 52.8 in August, although a reading above 50 still indicates growth in the sector.

A report released by the Commerce Department showed construction spending in the U.S. fell by 0.7 percent to an annual rate of $1.781 trillion in August after sliding by 0.6 percent to a revised rate of $1.794 trillion in July.

Among Indian ADR, ICICI Bank added 0.43% to $21.06, Tata Motors added 0.4% to 24.36, Dr Reddy's Labs added 3.5% to $54.16, INFOSYS was up 0.5% to $17.05, and Wipro gained 1.7% to $4.79. Azure Power Global added 10.8% to $6.14. HDFC Bank fell 0.15% to $58.33 and WNS Holdings shed 0.01% to $81.83.

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