US Stocks rebound on bargain hunting

The US stock market finished session higher on Thursday, 13 May 2021, as investors chased for bargain hunting after falling for three consecutive days and data showing a bigger than expected drop in initial jobless claims in the U.S.

However, market gains capped amid concerns that quickening price pressures could lead the U.S. Federal Reserve to tighten monetary policy sooner than expected, reducing its supply of cheap money that has propelled financial markets higher.

At the close of trade, the Dow Jones Industrial Average index advanced 433.79 points, or 1.29%, to 34,021. The S&P 500 index was up 49.46 points, or 1.22%, at 4,113. The tech-heavy Nasdaq Composite Index added 93.31 points, or 0.72%, to 13,125.

Total ten out of 11 major S&P 500 sectors closed higher, with industrials (up 1.9%), financials (up 1.87%), utilities (up 1.79%), materials (up 1.53%), and consumer staples (up 1.39%) sectors being notable gainers, while energy sector fell 1.35%.

ECONOMIC NEWS: US Jobless Claims Dip To Near Pre-Pandemic Levels- US first-time claims for unemployment benefits dipped to 473,000 in the week ended May 8th, a decrease of 34,000 from the previous week's revised level of 507,000, according to a report released by the Labor Department on Thursday. With the bigger than expected decrease, jobless claims once again fell to their lowest level since hitting 256,000 in the week ended March 14, 2020.

US Producer Prices Accelerate 6.2% On Year In April- US producer price index for final demand rose by 0.6% in April after jumping by 1.0% in March, the Labor Department reported on Thursday. The report showed the annual rate of producer price growth accelerated to 6.2% in April from 4.2% in March, with prices showing the biggest annual increase since 12-month data were first calculated in November of 2010. Excluding prices for food, energy, and trade services, core producer prices, increased by 0.7% in April after climbing by 0.6% in March. Core prices were expected to rise by 0.4%.

Among Indian ADR, HDFC Bank added 1.55% to $69.51, ICICI Bank added 1.51% to $16.16, WNS Holdings added 1.86% to $69.05, and INFOSYS added 0.22% to $17.88. Wipro rose 0.82% to $7.35, Dr Reddys Labs rose 1.5% to $72.54, and Vedanta added 0.13% to $15.16. Tata Motors added 1.22% to $21.66.

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