At the close of trade, the Dow Jones Industrial Average index advanced 167.71 points, or 0.55%, to 30,391.60. The S&P 500 index was up 26.21 points, or 0.71%, to 3,726.86. The tech-heavy Nasdaq Composite Index added 120.51 points, or 0.95%, to 12,818.96.
The strength on Wall Street came as traders generally remain optimistic about an economic recovery despite the recent spike in coronavirus cases and ahead of the outcome of two electoral races in Georgia that will determine control of the Senate.
The outgoing president was recorded Saturday telling a Georgia official to find votes in his favor that would overturn election results. And a group of Republicans in the House of Representatives are expected Wednesday to challenge Congress' official counting of Electoral College votes, which have increased risks for investors. If Democrats win the runoffs, they would gain both seats in the Senate, which will give them control of the White House and Congress, known as "the blue wave." As the Biden administration prepares to take control of the White House on Jan. 20, the blue wave may result in legislation in favor of larger relief bills and bigger stimulus packages that would increase liquidity in US markets.
Adding to the positive sentiment, a report released by the Institute for Supply Management showed an unexpected acceleration in the pace of growth in manufacturing activity in the month of December.
The New York Stock Exchange also announced earlier it "no longer intends to move forward with the delisting action" of three Chinese telecommunications companies, defying Trump's executive order in November that prohibited American companies and individuals from investing in firms that allegedly aid the Chinese military.
Energy stocks helped to lead the rebound on Wall Street, benefiting from a substantial increase by the price of crude oil. Crude for February delivery spiked $2.31 to $49.93 a barrel as Saudi Arabia said it would cut oil production by 1 million barrels a day as part of a deal with OPEC and its allies to keep overall production levels largely unchanged.
ECONOMIC NEWS: US ISM Manufacturing PMI Accelerates In December- US manufacturing PMI climbed to 60.7 in December after dipping to 57.5 in November, with a reading above 50 indicating growth, according to a report released by the Institute for Supply Management on Tuesday showed. With the unexpected increase, the manufacturing index reached its highest level since hitting 61.3 in August of 2018. The unexpected increase by the headline index came as the new orders index rose to 67.9 in December from 65.1 in November, while the production index jumped to 64.8 from 60.8. The employment index also climbed to 51.5 in December from 48.4 in November, indicating a return to job growth in the manufacturing sector. At the same time, the report showed the supplier deliveries index surged up to 67.6 in December from 61.7 in November, suggesting deliveries slowed at a faster rate. On the inflation front, the prices index spiked to 77.6 in December from 65.4 in November, reaching its highest level since May of 2018.
Among Indian ADR, HDFC Bank added 2.2% to $71.54, Wipro added 2.62% to $5.88, Dr Reddys Labs added 1.21% to $72.08, and Vedanta rose 2.95% to $9.45. WNS Holdings added 0.11% to $70.62, ICICI Bank inclined 2.49% to $14.80, Azure Power Global fell grew 4.92% to $46.95, INFOSYS added 2.32% to $17.65, and Tata Motors jumped 4.23% to $13.30.
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