Opening Bell - Morning Commentary
U.S. Stocks Buoyed by Rally in Bitcoin
U.S. stocks advanced on Tuesday, with the S&P 500 rising 0.2%, the Dow Jones gaining 0.4%, and the Nasdaq climbing 0.6%.
Technology stocks, led by companies like Apple, Nvidia, and Microsoft, were among the main drivers of the gains, while major corporate stalwarts such as Boeing and Intel also contributed to the S&P 500's advance.
The recovery was supported by a rebound in bitcoin and crypto-related stocks, which helped shift market sentiment away from Monday's risk-averse mood.
Bitcoin surged about 6% back above $91,000 after Monday’s plunge below $84,000, its sharpest one-day drop since March, which was driven by forced liquidations, thin liquidity and a broad risk-off move.
Rebound is helped by steadier equity markets, expectations of a Fed rate cut next week, and fresh institutional interest.
Markets now price a ~90% chance of a 25 bp Fed cut on December 10 and an imminent end to quantitative tightening, a backdrop that historically supports bitcoin and other risk assets.
Payroll processor ADP is scheduled to release its report on private sector employment in the month of November.
Economists currently expect private sector employment to edge up by 10,000 jobs in November after rising by 42,000 jobs in October.
Crude was down around 1% near $59 WTI and $63 Brent after OPEC+ confirmed it will hold output steady through Q1 2026, following this year’s supply increases, while demand signals remain uneven.
Nifty declined for the third consecutive session yesterday. The Indian Rupee extended its losing streak for a fifth session, hitting a historic low of 89.95 against the US dollar amid risk aversion and strong importer demand.
Persistent pressure from a widening trade deficit and limited central bank intervention contributed to the rupee closing 32 paise weaker at 89.88.
Nifty is now eyeing the 20-day EMA support at 25,968 as a critical level to maintain the broader uptrend.
A decisive break down below 25,968 could trigger further downside toward 25,842, while resistance on any rebound remains around the 26,300 mark.