The US markets rallied on Tuesday coming out of sluggishness and while the Dow and the S&P 500 rose to their best closing levels in almost a month, the tech-heavy Nasdaq reached a four-month closing high. The gains were mainly induced by overnight rally by stocks in the Asia-Pacific region. Traders even overlooked the report from the Institute for Supply Management showing an unexpected contraction in US manufacturing activity. The ISM said its purchasing managers index dropped to 48.6 in November from 50.1 in October. The reading below 50 pointed to the first contraction in manufacturing activity since November of 2012, when the index registered 48.9 percent. Investors remained optimistic about the November jobs report, set to be released Friday, which is widely considered the last major piece of data that could influence the Fed’s decision about whether or not to lift rates.
Meanwhile, the Commerce Department released a report showing that construction spending rose more than expected in October, reaching its highest level in nearly eight years. The report said construction spending climbed 1.0 percent to an annual rate of $1.107 trillion in October.
The Dow Jones Industrial Average surged by 168.43 points or 0.95 percent to 17,888.35, the Nasdaq gained 47.64 points or 0.93 percent to 5,156.31 and the S&P 500 moved up by 22.22 points or 1.1 percent to 2,102.63.
The Indian ADRs made a mixed closing, HDFC Bank was up by 1.74%, ICICI Bank was up by 0.06%, Dr Reddy’s was up by 1.22%. On the other hand Tata Motors was down by 0.68%, Wipro was down by 0.11% and Infy was down by 0.12%.