US Market ends volatile session in positive territory

The US stock market finished volatile session slight higher on Wednesday, 14 September 2022, as investors chased for bargain hunting following a massive sell-off for stocks on Tuesday, with gains in energy, consumer discretionary, utilities, and tech stocks offset losses in realty, materials, financials, and industrials.

At the close of trade, the Dow Jones Industrial Average index rose by 30.12 points, or 0.1%, to 31,135.09. The S&P500 index was up 13.32 points, or 0.34%, to 3,946.01. The tech-heavy Nasdaq Composite Index advanced 86.10 points, or 0.74%, to 11,719.68.

Market participants seemed reluctant to make significant moves amid concerns about the outlook for interest rates after Tuesday's hotter-than-expected consumer price inflation report. The Fed, which has raised benchmark borrowing costs four times this year, is due to announce its next policy decision on Sept. 21. Financial markets have fully priced in an interest rate hike of at least 75 basis points at the conclusion of the FOMC's policy meeting next week, with talk of a 100-bps lift-off are now back on the table.

 

Also, worries persist in the financial market that a prolonged period of policy tightening from the Fed could tip the economy over the brink of recession.

Energy is the top performing sector in the S&P 500 as oil prices perked up on Wednesday. Shares of Coterra Energy and APA have jumped more than 7% each.

Rail stocks moved lower after a labor union that represents railroad workers said its members voted against a tentative contract agreement aimed at preventing a potential labor strike, with shares of CSX Corporation, Union Pacific and Norfolk Southern down 2.3%, 4.4% and 2.5%, respectively.

Among individual stocks, Shares of Netflix jumped after reports that the streaming giant projects advertising-supported tier would reach 40 million viewers by the third quarter of 2023.

ECONOMIC NEWS: The Labor Department released producer prices report on Wednesday showing its producer price index for final demand edged down by 0.1% in August after falling by a revised 0.4% in July. The report also showed the annual rate of growth in producer prices slowed to 8.7% in August from 9.8% in July.

Among Indian ADR, ICICI Bank added 2.5% to $23.38, Azure Power Global added 11% to $5.84, HDFC Bank added 3.9% to $67.82, Tata Motors added 0.25% to $28.09 and Dr Reddy's Labs added 0.3% to $52.90. WNS Holdings sank 0.6% to $85.67, Wipro shed 0.4% to $5.11, and INFOSYS was down 2.6% at $18.08.

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