The US markets closed higher on Wednesday, with the S&P 500 closing at a record high. The market reacted to a pair of better-than-expected economic reports, pushing the indices higher. Private-sector hiring in March picked up to the fastest pace in three months while factory orders rose in February. The orders for goods produced in US factories rose 1.6 % in February. Factory orders fell by a revised 1% in January, compared with a prior estimate of a 0.7% decline. Orders for durable goods -- products meant to last at least three years -- rose 2.2% in February. Orders for nondurable goods increased 1%. Private-sector employers added the most jobs in three months during March, and quicker hiring may be ahead. The private-sector employers added 191,000 jobs last month, up from 178,000 in February. A prior estimate pegged February’s increase at 139,000.
Meanwhile, St. Louis Fed President James Bullard stated that he expects the Federal Open Market Committee will need to begin hiking rates in the first quarter of 2015. Bullard believes the unemployment rate will fall to around 6% by the end of this year. Atlanta Fed President Dennis Lockhart stated that the projected GDP rate of 3.0% should warrant a rate hike during the second half of 2015, but a delay could result if the economy stalls.
The Dow Jones Industrial Average added 40.39 points or 0.24 percent, to 16,573.00, the Nasdaq Composite was up by 8.42 points or 0.20 percent, to 4,276.46, while the S&P 500 gained 5.38 points or 0.29 percent, to close at 1,890.90.
The Indian ADRs closed in green on Wednesday; Dr. Reddy’s Lab was up 1.24%, Tata Motors was up 0.75%, Infosys was up 0.47%, HDFC Bank was up by 0.35% and ICICI Bank was up 0.05%.