5 things that changed for the stock market overnight – Gift Nifty to US Fed meeting minutes
The Asian markets traded mostly lower, while the US stock market indices closed in the red overnight after the amid selling in retail and technology shares.
On Tuesday, the domestic benchmark equity indices ended with decent gains, snapping a two-day losing streak.
The Sensex closed 275.62 points, or 0.42%, higher at 65,930.77, while the Nifty 50 gained 89.40 points, or 0.45%, to settle at 19,783.40.
“The drop in bond yields and the dollar index suggests mounting speculation regarding the potential peak in the interest rate cycle. This will attract funds to emerging markets,” said Vinod Nair, Head of Research at Geojit Financial Services.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded mostly lower after minutes of the last US Federal Reserve meeting showed the officials had low appetite for interest rate cuts.
Japan’s Nikkei 225 rose 0.12%, while the Topix gained 0.20%. South Korea’s Kospi declined 0.56% and the Kosdaq fell 0.11%
Hong Kong’s Hang Seng index futures were lower at 17,702 compared with the HSI’s close of 17,733.89.
Australia’s S&P/ASX 200 gained 0.05%.
Gift Nifty was trading around 19,862 level as against Nifty futures’ previous close of 19,840, indicating a mildly positive start for the Indian benchmark indices.
Wall Street
US stock market indices ended lower on Tuesday, with the S&P 500 and Nasdaq snapping five-session winning streaks, dragged by selling in retail and technology shares.
Sentiment also weakened after the minutes from the latest US Federal Reserve meeting showed officials agreed to take a cautious approach to raising US interest rates going forward.
The Dow Jones Industrial Average fell 62.75 points, or 0.18%, to 35,088.29, while the S&P 500 declined 9.19 points, or 0.20%, to 4,538.19. The Nasdaq Composite ended 84.55 points, or 0.59%, lower at 14,199.98.
Among stocks, Nvidia shares declined around 2% after the closing bell following the company’s quarterly report and guidance.
Shares of Lowe’s Cos fell 3.1%, Best Buy shares eased 0.7%, while Kohl’s Corp shares dropped 8.6%.
US Fed Meeting Minutes
The US Federal Reserve officials at their latest policy meeting agreed to “proceed carefully” and only raise interest rates if progress in controlling inflation faltered.
All participants agreed that the Committee was in a position to proceed carefully and that policy decisions at every meeting would continue to be based on the totality of incoming information and its implications for the economic outlook as well as the balance of risks.
Participants noted that further tightening of monetary policy would be appropriate if incoming information indicated that progress toward the Committee’s inflation objective was insufficient.
Dollar near 2-1/2-month lows
The US dollar index traded around 2-1/2-month lows after the release of the minutes of the Federal Reserve’s last meeting.
The dollar index, which measures the greenback against a basket of currencies, was flat at 103.58, near levels last seen in early September but off an overnight session low of 103.17.
The euro was around $1.0912, while Sterling was mostly flat at $1.2534, not far from a two-month high of $1.2554 touched overnight.
US Treasury yields slipped again overnight to hover around 4.40%
Nvidia outlook beats expectations
Nvidia said it expects a steep drop in fourth-quarter sales in China – a key revenue generator – in the wake of new US rules, but forecast overall revenue above Wall Street targets as supply-chain issues ease, Reuters reported.
Nvidia forecast adjusted gross margins of 75.5% for the fourth quarter, above analyst estimates of 72.64%, according to LSEG data.
Nvidia forecast current-quarter revenue of $20 billion, plus or minus 2%. Analysts polled by LSEG expect revenue of $17.86 billion.
Adjusted third-quarter revenue tripled to $18.12 billion, ahead of an average estimate of $16.18 billion. Excluding items, the company earned $4.02 per share, beating estimates of $3.37 a share, Reuters reported.
Nvidia shares, which has jumped more than 240% this year, slipped 1.5% in volatile after-hours trading.
(With inputs from Reuters)
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