Tech Selloff Deepens as Markets Await Three Central Bank Decisions

Wall Street's main indexes closed lower on Wednesday, with the S&P 500 and Nasdaq falling to three-week lows as AI valuation concerns pressured technology stocks.

The S&P 500 dropped 1.2%, and the Nasdaq declined 1.8%, marking four consecutive sessions of tech-led losses. Oracle plunged 5.4% on data centre concerns, while Nvidia fell 3.8%, Broadcom 4.5% amid persistent AI valuation worries.

Markets await three key events: the Bank of England's expected 25-basis-point cut to 3.75%, the ECB's anticipated rate hold at 2.15%, and the BOJ's expected rate increase to a three-decade high.

The dollar strengthened against major currencies Thursday as markets positioned for central bank decisions in Britain, Europe, and Japan.

Oil prices rebounded from four-year lows after President Trump ordered a complete blockade of sanctioned Venezuelan tankers, pushing Brent crude above $59 per barrel.

Silver surged to a record high while gold hovered near its all-time peak, reflecting aggressive market pricing of monetary debasement and macro uncertainty.

Copper futures steadied around $5.35 per pound, up 1.15% daily and 33% year-over-year, supported by strong Chinese EV demand and U.S. AI investment. Supply disruptions in Chile and Peru, plus potential U.S. tariffs on refined metals, reinforced the bullish outlook despite broader market weakness.

Nifty extended its losing streak for the third consecutive session, slipping 41 points to close at 25,818 yesterday.

Indian rupee snapped its five-day losing streak, appreciating sharply by 65 paise against the U.S. dollar. The rebound is widely attributed to suspected central bank intervention.

Nifty has reached near its 50 DEMA support, currently placed at 25765. A decisive break below the 50-DEMA could trigger additional selling pressure and deepen the ongoing correction.

On the upside, the 26,000 zone is expected to provide immediate resistance; a sustained close above it may prompt short-covering in the index.

Indian markets are poised to open near yesterday's close due to the absence of any strong global cues.