Gift Nifty takes over the negative baton from weak overnight lead from Wall Street indicating an up-and-down session for the benchmark Nifty and most importantly, Nifty’s new all-time-high will have to wait for another day.
The biggest headwind for the day is the stronger-than-expected US jobs report, the first major release since the government shutdown, reinforcing expectations that the Federal Reserve will hold rates in December.
Our Call of the Day however suggests that there is a bright chance that the bear too could turn bull on any early decline amidst:
1) Optimism surrounding a potential US–India trade agreement.
2) FIIs turning buyers this week to the tune of ₹1,578 crore.
Bottom-line: Nifty bulls will still aim to hit and surpass its all-time-high 26277.35 mark.
7:00 AM GLOBAL UPDATE:
GIFT Nifty 🇮🇳: (-65, 26153)
Dow Futures: (+207, 45959)
Nasdaq 100 Futures (+98, 24153)
Nikkei (-905, 48925)
Hang Seng (-476, 25360)
Dow Jones (-387, 45752)
Nasdaq Composite (-486, 22078)
Bovespa (-1141, 155381).
WHAT HAPPENED AT WALL STREET IN OVERNIGHT TRADE:
Wall Street’s key indexes started Thursday’s trade with solid gains, fueled by Nvidia’s upbeat earnings and a surprisingly robust September jobs print but worries of an AI bubble weighed on US stocks into the close.
But the bullish momentum didn’t last.
As the session progressed, sentiment reversed sharply. Nvidia slipped from its early highs, and expectations for a December Fed rate cut weakened, triggering a broad selloff. NVIDA was down 3.2% at the close – making it one of the worst-performing Dow Jones stocks of the day – as AI bubble worries resurfaced.
The US economy added 119,000 jobs in September, rebounding from a downwardly revised decline of 4,000 in August and surpassing forecasts of 50,000. The unemployment rate rose to 4.4, its highest since October 2021, exceeding the expected 4.3%, while wage growth came in slightly above expectations at 3.8%.
By the closing bell, the gains had fully evaporated:
Dow Jones: -0.84% at 45,752
S&P 500: -1.56% at 6,538
Nasdaq Composite: -2.15% at 22,078
Gold prices ($4075 per ounce) was seen consolidating with positive bias despite policymakers’ efforts to downplay the likelihood of dovish move.
WTI crude oil futures ($58.50) plunged with negative bias, as OPEC revised its outlook to show a supply surplus in the third quarter. The group now estimates global supply exceeded demand by about 500,000 barrels per day, reversing its prior deficit forecast.
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