At closing bell, the Dow Jones Industrial Average surged 459.67 points, or 1.78%, to 26,287.03. The S&P 500 index gained by 49.71 points, or 1.59%, to 3,179.12. The tech-heavy Nasdaq Composite Index rose by 226.02 points, or 2.21%, to 10,433.65.
Stock markets started the week in an upbeat mood after a front-page editorial in China's Securities Times on Monday said that fostering a healthy bull market after the pandemic is now more important to the economy than ever. Loosened financial regulations and hopes for further government support for markets could ring in a new bull market in China.
Adding to the good news was a better-than-expected report on the US services sector, released by the Institute for Supply Management Monday. The services purchasing managers index for June jumped to 57.1 points, marking the largest one-month increase since the survey began in 1997.
However, Monday's upbeat mood in the market contrasts with a continuing spike in cases of coronavirus in the U.S. The World Health Organization said on Saturday that more than 200,000 coronavirus cases were confirmed over a 24-hour span, a record. At a regional level, the biggest spike was seen in the Americas, where nearly 130,000 new cases were confirmed. In the U.S., coronavirus-related hospitalizations grew in more than 20 states, including, Florida, Texas, Arizona and Georgia.
ECONOMIC NEWS: US ISM Service Sector Activity Expands 57.1 In June- The Institute for Supply Management reported a substantial turnaround in US service sector activity in the month of June. The ISM said its non-manufacturing index spiked to 57.1 in June from 45.4 in May, with a reading above 50 indicting an increase in service sector activity. The sharp increase by the non-manufacturing index reflected the largest single-month percentage-point increase since its debut in 1997. The much bigger than expected increase by the headline index came as the business activity index skyrocketed to 66.0 in June from 41.0 in May and the new orders index soared to 61.6 from 41.9. The employment index also jumped to 43.1 in June from 31.8 in May, although the reading below 50 indicates employment in the service sector contracted for the fourth month in a row. The report also said the prices index surged up to 62.4 in June from 55.6 in May, reflecting the largest monthly increase since August of 2012.
Among Indian ADR, WNS Holdings added 0.02% to $55.70, Tata Motors added 9.61% to $7.53, INFOSYS rose 1.92% to $10.91, ICICI Bank added 1.66% to $9.79, Vedanta rose 5.66% to $5.97, and HDFC Bank added 2.22% to $48.82, while Wipro fell 0.3% to $3.35 and Dr Reddys Labs was down 1.06% to $52.32.
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