US Stocks regain strength on bargain hunting

The US stocks finished session finished session higher after bouncing between losses and gains on Friday, 12 June 2020, as bargain hunting following a sharp losses a day earlier. However, market gains were capped as continued worries about the economy amid emerging second wave of the epidemic.

At closing bell, the Dow Jones Industrial Average fell gained 477.37 points, or 1.9%, to 25,605.54, after touching an intra-session peak of 25,965.55 and a low of 25,183. The S&P 500 index added 39.21 points, or 1.3%, at 3.041.31, off its intraday peak at 3,088 but also off its low at 3,003.10. The tech-heavy Nasdaq Composite Index climbed 96.08 points, or 1%, to 9,588.81, after briefly slipping into negative territory at 9,485.04. For the week, the Dow lost 5.55%, the S&P 500 fell 4.8%, and the Nasdaq was off 2.33%.

 

Bargain hunting contributed to the strength on Wall Street, as traders looked to pick up stocks at relatively reduced levels after steep drop on Thursday marked the worst day for the markets since the sell-off seen as worries about the coronavirus began to escalate in March.

Adding to the positive sentiment, the University of Michigan released a report showing a continued rebound in U.S. consumer sentiment in the month of June. The preliminary report showed the consumer sentiment index for June climbed to 78.6 from 72.3 in May and 71.8 in April. Surveys of Consumers chief economist Richard Curtin said the increase by the index reflected gains in the outlook for personal finances and more favorable prospects for the national economy due to the reopening of the economy.

Meanwhile, a separate report from the Labor Department showed a bigger than expected jump in U.S. import prices in the month of May. The Labor Department said import prices surged up by 1% in May after plunging by 2.6 percent in April.

Fears of an emerging second wave of the epidemic in the U.S. persist, with half a dozen states, including Texas and Arizona, facing rising infections of COVID-19. The Federal Reserve's indication earlier this week of a long road to recovery and rising COVID-19 cases in the United States have cast a pall over investor bets on a swift economic rebound.

Photoshop maker Adobe Inc rose after posting a better-than-expected quarterly profit, driven by strong demand for its cloud software.

Among Indian ADR, HDFC Bank added 3.93% to $42.33, ICICI Bank rose 3.81% to $9.00, Vedanta added 6.93% to $5.40, WNS Holdings inclined 4.23% to $53.68, Tata Motors added 6.87% to $7, INFOSYS climbed up 2.82% to $9.11, and Wipro grew 0.96% to $3.15, while Dr Reddys Labs shed 0.23% to $52.40.

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