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US markets gain as investors cheer Fed’s speech

01 Apr 2014 Evaluate

The US markets closed in green on Monday, while quarterly performance for the main indexes was mixed. The benchmark S&P 500 showed resilience in the quarter despite geopolitical uncertainties and the curtailing of monetary stimulus. Investors cheered a speech by Janet Yellen in Chicago in which she maintained the Fed will support the economy for some time to come. Investors also welcomed news that the European Central Bank may start quantitative easing to address the threat of deflation in the euro-zone. Federal Reserve Chairwoman Janet Yellen stated that the recovery still feels like a recession to many Americans, which is why the central bank will keep its extraordinary support for the economy for some time to come. Yellen also provided evidence why there’s still slack in the jobs market, and weighed in on the hot issue of why the participation rate is so low. Yellen also added that the decline in unemployment has not helped raise wages for workers as in past recoveries - saying it’s averaging only a little more than 2% a year since the recession.

On the economy front, a gauge of Chicago-area businesses tumbled in March, hitting the lowest level since August, led by drops for new orders and employment. The Chicago purchasing-managers index fell to 55.9 in March, down 3.9 points from February. Results over 50 indicate an expansion from the prior month.

The Dow Jones Industrial Average added 134.60 points or 0.82 percent, to 16,457.66, the Nasdaq Composite was up by 43.23 points or 1.04 percent, to 4,198.99, while the S&P 500 gained 14.72 points or 0.79 percent, to close at 1,872.34.

The Indian ADRs closed mostly in green on Monday; Tata Motors was up 0.83%, HDFC Bank was up by 0.64%, Wipro was up 0.25% and Infosys was up 0.25%. On the other hand, Dr. Reddy’s Lab was down 0.05%.

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