The Good News: In overnight trade, Wall Street indices logged solid back-to-back gains and most importantly, are at the doorsteps of fresh new record territory.
The Positive catalyst: ‘Bad news is good news again’ as Fed rate-cut expectations rise after surprisingly weak ADP jobs data for November.
Hopefully, the renewed optimism from Wall Street could lend support to Indian equities.
So, amidst this backdrop, the large wave of selling doesn’t seem probable. In fact, dip buying should be the gyan mantra.
Nifty could also attract buying at lower levels on hopes of an RBI rate cut on December 5.
Long Story Short: Bulls may to regroup at lower levels. Aggressive risk-on sentiment appears likely today — only if Nifty manages to hold its big support at 25851 mark.
7:00 AM GLOBAL UPDATE:
GIFT Nifty 🇮🇳: (-43, 26093)
Dow Futures: (+90, 47973)
Nasdaq 100 Futures (+5, 25612)
Nikkei (+555, 50420)
Hang Seng (+43, 25804)
Dow Jones (+408, 47883)
Nasdaq Composite (+40, 23454)
Bovespa (+663, 161755).
WHAT HAPPENED AT WALL STREET IN OVERNIGHT TRADE:
Wall Street wrapped up Wednesday’s session on a firm footing, supported by:
1) Rising confidence in an improving corporate earnings outlook
2) Growing expectations of a Federal Reserve rate cut on December 10
The Street is keenly awaiting President Donald Trump’s signal on the next Fed Chair.
Trump said he will reveal his choice in early 2026, though markets remain far more focused on the upcoming Fed meeting for immediate policy cues.
The ADP National Employment Report has all but sealed a rate cut at the next Fed meeting. Private-sector payrolls were down 32,000 in November vs a FactSet-compiled consensus forecast for 40,000 new jobs.
CME FedWatch shows an 89.2% probability the Federal Open Market Committee will cut interest rates by 25 basis points when it meets next week.
Gold prices ($4210 per ounce) was in consolidative mode after prices reached a six-week peak. That said, mounting expectations of a US interest rate cut next week acted as positive catalyst.
Meanwhile, gold is up nearly 60% this year and pacing toward its strongest annual performance since 1979.
WTI crude oil futures ($59.05) are trading with negative bias as traders monitored geopolitical developments in Venezuela and Ukraine and their potential impact on oil supply. Attacks on Russian energy assets also weighed against the lingering view of an oversupplied market.
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