Opening Bell - Morning Commentary

Wall Street Sells Off Sharply Amid Fed Rate Cut Uncertainty, Bihar Election results in focus.

Wall Street ended sharply lower on Thursday, with steep losses in Nvidia and other AI heavyweights, as investors scaled back expectations of interest rate cuts amid inflation worries and divisions among central bankers over the U.S. economy's health.

All three major U.S. stock indexes posted their steepest daily percentage declines in over a month.

The Nasdaq plummeted 2.3% to 22,870, the S&P 500 plunged 1.7% to 6,737, and the Dow tumbled 797 or 1.7% to 47,457.

The U.S. government reopened after a record 43-day shutdown that had worried investors and disrupted the flow of economic data.

The weakness on Wall Street may also have reflected uncertainty about whether key U.S. economic indicators would be released after the most extended government shutdown in U.S. history.

White House press secretary Karoline Leavitt told reporters on Wednesday that the October jobs and consumer price inflation reports are "likely never being released" as a result of the shutdown.

A growing number of Federal Reserve policymakers in recent days have signalled hesitation about further interest rate cuts, pushing financial market-based odds of a reduction in borrowing costs in December to near even. Fed officials who spoke recently cited worries about inflation and signs of relative stability in the labour market after two U.S. interest rate cuts this year.

Asian shares joined a global selloff on Friday as hawkish comments from Federal Reserve officials doused hopes for a U.S. rate cut next month.

Crude oil jumped 2.71% to $60.28 per barrel, supported by a drawdown in US inventories and ongoing output restraint among non-OPEC+ producers. Forecasts for tighter near-term supply continue to buoy prices despite global risks and longer-term demand questions.

India’s retail inflation fell to a historic low of 0.25% in October, the third consecutive month below the RBI’s 2–6% target range. Easing inflation supported rate cut hopes and domestic resilience, aiding overall market stability despite global volatility.

Nifty remains in an ongoing uptrend, with immediate resistance at 26,100 and support near 25,715.

Market sentiment is cautious ahead of the Bihar election results, with increased volatility.

Indian markets are poised to open subdued today on weak global cues.