The US stocks moved sharply higher on Thursday, 10 August 2022, with the Dow, the NASDAQ and the S&P500 indexes settling significantly above the unchanged line, as tamer than expected inflation data prompted bets that the Federal Reserve would slow the pace of interest rate hikes at its September meeting.At the close of trade, the Dow Jones Industrial Average index inclined 535.10 points, or 1.63%, to 33,309.51. The S&P500 index was up by 87.77 points, or 2.13%, to 4,210.24. The tech-heavy Nasdaq Composite Index increased by 360.88 points, or 2.89%, to 12,854.80.
Wall Street equities rallied after signs of sharply decelerating U.S. inflation prompted bets that the Federal Reserve would raise rates at a slower pace than previously expected. Traders are now pricing in a 50 basis points rate hike next month, lower than the 75 basis point increase that had been expected before the consumer price index report.
Semiconductor stocks showed a substantial rebound after pulling back sharply in recent sessions. Considerable strength was also visible among computer hardware stocks. Networking stocks also turned in a strong performance on the day.
ECONOMIC NEWS: The Consumer Price Index (CPI) was unchanged last month after advancing 1.3% in June, the Labor Department said on Wednesday. Consumer prices in the US rose 8.5% year on year in July, following a 9.1% rise in June. The so-called core CPI rose 0.3% in July after climbing 0.7% in June, but increased 5.9% in the 12 months through July, the same pace as in June.
Among Indian ADR, INFOSYS added 1% to $20.38, Dr Reddy's Labs added 1% to $53.46, Azure Power Global added 4.7% to $11.57, WNS Holdings added 2.2% to $87.44, HDFC Bank added 3.5% to $65.27, and ICICI Bank inclined 3.4% to $22.04. Wipro added 1.9% to $5.47 and Tata Motors gained 4.4% to $30.84.
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