US Market extends gain

The US equity market finished higher for third straight session on Tuesday, 02 June 2020, amid new bouts of stimulus and optimism about the reopening of the economy after weeks of coronavirus lockdowns. However, market gains capped due to nationwide civil unrest and tensions between China and the US over the novel coronavirus and trade. At closing bell, the Dow Jones Industrial Average climbed 267.63 points, or 1.1%, to 25742.65. The S&P 500 - a gauge of US retirement and education savings accounts, rose 25.09 points, or 0.8%, to 3080.82. The tech-heavy Nasdaq Composite Index added 56.33 points, or 0.6%, to 9608.37.

The strength on Wall Street extended a recent upward trend amid optimism about an economy recovery as businesses reopen around the world following the coronavirus-induced shutdown and manufacturing gauges show economies stabilizing following coronavirus shutdowns..

 

However, market gains were somewhat capped due to civil unrest that gripped across the country. Overnight, demonstrators set fire to a strip mall in Los Angeles, looted stores in New York City and at least five police officers were hit by gunfire, hours after President Donald Trump vowed to deploy the U.S. military to regain control.

Energy stocks helped lead the markets higher, benefiting from a sharp increase by the price of crude oil. Crude for July delivery surged up $1.37 to $36.81 a barrel. Substantial strength was also visible among steel stocks, as reflected by the 3.2% jump by the NYSE Arca Steel Index. Chemical, semiconductor and transportation stocks also saw considerable strength on the day, while gold stocks bucked the uptrend amid a steep drop by the price of the precious metal.

Among Indian ADR, ICICI Bank rose 7.06% to $9.55, HDFC Bank 4.92% to $44.60, Wipro 1.5% to $3.39, Vedanta 3.57% to $5.22, Tata Motors 9.08% to $6.61, WNS Holdings 5.06% to $51.74, and INFOSYS 1.3% to $9.38, while Dr Reddys Labs declined 0.02% to $52.46.

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