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US Market Rebounds on Bargain Hunting

US Market Rebounds on Bargain Hunting

The US stocks rebounded sharply in volatile trade on Friday, 01 October 2021, with the major three indexes finishing higher, as investors chased for bargain buying after the steep drop seen in the recent sessions. The rebound in Wall Street is chiefly supported by news of Merck positive trials for new oral treatment for Covid-19 treatment, the pullback in Treasury yields, and better than expected ISM manufacturing PMI data.

At the close of trade, the Dow Jones Industrial Average index advanced 482.54 points, or 1.43%, to 34,326.46. The S&P500 index added 49.50 points, or 1.15%, to 4,357.04. The tech-heavy Nasdaq Composite Index added 188.12 points, or 0.82%, to 14,566.70. For the week, the Dow slid by 1.4%, the S&P 500 slumped by 2.2% and the Nasdaq plunged by 3.2%. For September, the Dow tumbled by 4.3%, meanwhile, the Nasdaq and the S&P 500 plummeted by 5.3% and 4.8%, respectively.

Total volume turnover on U. S. exchanges stood at 8.98 billion shares, down from yesterday’s 10.73 billion shares.
In the NYSE exchange, 2340 issues advanced, 1003 issues declined, and 120 issues closed unchanged. In the NASDAQ, 2774 issues advanced, 1698 issues declined, and 253 issues unchanged.

Total 10 of 11 sectors ended up along with the S&P500 index, with energy (up 3.3%) as the top gaining sector, followed by communication services (up 1.78%), materials (up 1.6%), financials (up 1.59%), information technology (up 1.44%), and industrials (up 1.4%) sectors.

The top performers on the S&P 500 were CF Industries Holdings Inc (up 9.5%), TripAdvisor Inc (up 9.2%), and Merck & Company Inc (up 8.4%). The worst performers were Regeneron Pharmaceuticals Inc (down 5.7%), Kroger Company (down 3.2%), and Illumina Inc (down 2.7%).

Shares of Merck jumped after the drugmaker and Ridgeback Biotherapeutics said their oral antiviral treatment for Covid-19 reduced the risk of hospitalization or death by 50% for patients with mild or moderate cases.

Shares of travel-related companies advanced on news of the new Covid-19 drug from Merck. Shares of Royal Caribbean and Las Vegas Sands added 3.8% and 4.3%, respectively.

ECONOMIC NEWS: The Institute for Supply Management manufacturing PMI crept up to 61.1 in September from 59.9 in August, with a reading above 50 indicating growth in the manufacturing sector

COMMODITY NEWS: Crude oil prices rose by around 1% on Friday ahead of a meeting of OPEC+ producers on Monday. The Brent crude price rose by US97 cents or 1.2% to US$79.28 a barrel. The US Nymex crude price rose by US85 cents or 1.1% to US$75.88 a barrel.

Base metal prices were mixed on Friday. Tin, zinc, and aluminum fell up to 0.6%. Other metals rose to 2.9% with the lead up the most.

Among Indian ADR, Wipro added 1.25% to $8.94, INFOSYS added 0.36% to $22.33, Dr Reddys Labs added 1.83% to $66.33, Vedanta added 1.31% to $15.48, WNS Holdings rose 1.5% to $83.03, HDFC Bank rose 0.85% to $73.71, ICICI Bank grew 0.37% to $18.94, and Tata Motors added 1.65% to $22.78.

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