US Stocks rebound on bargain hunting

The US stock market rebounded strongly on Monday, 21 June 2021, with the 11 S&P sectors advanced, as investors chased for bargain hunting that are set to benefit from a broader economic recovery after the steep drop seen last Friday.

At the close of trade, the Dow Jones Industrial Average index advanced 586.89 points, or 1.76%, to 33,877. The S&P 500 index inclined 58.34 points, or 1.4%, at 4,225. The tech-heavy Nasdaq Composite Index added 111.10 points, or 0.79%, to 14,141.

All 11 S&P 500 sectors closed up, with energy (up 4.3%) sector was top gainer, followed by financials (up 2.35%), materials (up 2.1%), real estate (up 1.9%), healthcare (up 1.3%), information technology (up 1.1%), and consumer staples (up 1.1%) sectors.

 

U.S. stocks climbed on Monday as the market recouped some of the steep losses caused by the Federal Reserve's policy shift. Last week's sell-off came amid concerns about the outlook for monetary policy after the Federal Reserve latest projections called for two interest rates hikes in 2023. Rattling the nerve of traders was the comment by St Louis Fed president James Bullard, who told that interest rates may move higher next year on inflation risks. His rhetoric was harsher than the earlier projection by other Fed officials who projected that the increase in borrowing costs will probably come in 2023

Energy stocks were the market's best performances on the day, moving sharply higher along with the price of crude oil. West Texas Intermediate crude was up 2.7% to $73.56 a barrel. Brent crude, oil's international benchmark, jumped 2% to $74.93 a barrel. Devon Energy climbed nearly 7%, while Occidental Petroleum rose about 5.4%.

Substantial strength was also visible among banking stocks. Banks, including JPMorgan, Bank of America and Goldman Sachs rebounded.

Moderna Inc gained after a report said the drugmaker is adding two new production lines at a COVID-19 vaccine manufacturing plant, in a bid to prepare for making more booster shots. On the economic front,

Among Indian ADR, Tata Motors added 1.9% to $22.60, Dr Reddys Labs was up 0.34% to $71.74, Vedanta added 4.7% to $14, Wipro added 1.3% to $7.94, HDFC Bank added 1.1% to $75.21, and ICICI Bank added 2.1% to $17.22. INFOSYS added 1.7% to $20.53 and WNS Holdings rose 2% to $79.86.

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