The US markets surged on Thursday reversing most of Wednesday’s plunge, supported by unexpected drop in jobless claims and higher-than-estimated earnings coupled with trade deficit, which was smaller than expected. A drop in first-time jobless claims calmed nerves about the economy. The labor Department stated that the first-time applications for jobless benefits decreased 7,000 in the week ended August 6 to 395,000, the fewest since early April. The Labor Department further said the number of people on unemployment benefit rolls and those getting extended payments also dropped. There were better- than-estimated earnings from Cisco Systems Inc. and News Corp. which helped improve the sentiments of the market.
The Dow Jones industrial average gain 423.37 points, or 3.95 percent, to 11,143.30. The Standard and Poor's 500 closed higher by 51.88 points, or 4.63 percent, to 1,172.64, while the Nasdaq composite was up by 111.63 points, or 4.69 percent, to 2,492.68
The Indian ADRs closed in green on Thursday, ICICI Bank was up by 1.64%, Infosys Technologies was up by 1.47%, HDFC Bank was up by 1.39%, Dr Reddy’s Lab was up by 1.09% and Tata Communications was up by 1.04%.
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